To help clarify our understanding of decision-making behaviors, researchers have turned to regret theory
Initially, the regret theory
(RT) was proposed by Bell et al.
This paper proposes a new group decision making method that integrates the cloud model, prospect theory, and regret theory
for risky multicriteria group decision making.
They refer to the literature on disappointment theory (Bell, 1985; Loomes and Sugden, 1986) and regret theory
(Bell, 1982; Loomes and Sugden, 1982; Quiggin, 1994) when motivating the cushion effect hypothesis.
theories, regret theory
, argues that all anomalies explained by prospect
(2009), "A Revised VIKOR Model for Multiple Criteria Decision Making - The Perspective of Regret Theory
", Communications in Computer and Information Science, vol.
In particular, two of these models are worth noting: the Symbolic-Interpretive Perspective (S-I), and Deci-sional Regret Theory
. S-I is an overarching perspective (encompassing a handful of other group theories) that posits the primacy of story-telling and the attendant use of symbols.
Consequently, we applied the postpurchase regret theory
to integrate the consequences of PPD.
Wolf (Santa Clara U.) explains the newest theories behind the study of group dynamics such as Symbolic-Interpretive Perspective, Group Dialectics, Decisional Regret Theory
, Social Comparison Theory and Bona Fide Group Perspective, and shows how each can be applied to play groups, cliques, street gangs and even juries.
represents the idea that people take into account emotional reactions to outcomes when making decisions.
Braun and Muermann examine optimal insurance purchase decisions of individuals whose behavior is consistent with Regret Theory
. Their model incorporates a utility function that assigns a disutility to outcomes that are ex-post suboptimal, and predicts that individuals with regret-theoretical preferences adjust away from the extremes of full insurance and no insurance coverage.
The essential notion underlying regret theory
is that people tend to compare their actual situations with the ones they would have been in, had they made different choices in the past.