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Regret now, take it now: On the role of experienced regret on intertemporal choice

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  • Raeva, Daniela
  • Mittone, Luigi
  • Schwarzbach, Jens

Abstract

We present an experiment designed to test whether experienced regret and rejoicing evoked in a risk choice have an impact on subsequent intertemporal choice. We found that regret and rejoicing experienced prior to an intertemporal choice influenced considerably the way people relate to future: when regret was experienced participants preferred not to wait, whereas when rejoicing was experienced, participants were willing to wait longer. We show that in the framework of the discounted utility model experienced regret lowered and experienced rejoicing increased the discount factor.

Suggested Citation

  • Raeva, Daniela & Mittone, Luigi & Schwarzbach, Jens, 2010. "Regret now, take it now: On the role of experienced regret on intertemporal choice," Journal of Economic Psychology, Elsevier, vol. 31(4), pages 634-642, August.
    • Handle: RePEc:eee:joepsy:v:31:y:2010:i:4:p:634-642
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    References listed on IDEAS

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    1. David E. Bell, 1982. "Regret in Decision Making under Uncertainty," Operations Research, INFORMS, vol. 30(5), pages 961-981, October.
    2. Loewenstein, George, 1996. "Out of Control: Visceral Influences on Behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 65(3), pages 272-292, March.
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    8. George Loewenstein, 2000. "Emotions in Economic Theory and Economic Behavior," American Economic Review, American Economic Association, vol. 90(2), pages 426-432, May.
    9. van Dijk, Eric & Zeelenberg, Marcel, 2005. "On the psychology of `if only': Regret and the comparison between factual and counterfactual outcomes," Organizational Behavior and Human Decision Processes, Elsevier, vol. 97(2), pages 152-160, July.
    10. Paul A. Samuelson, 1937. "A Note on Measurement of Utility," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 4(2), pages 155-161.
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    Cited by:

    1. Giorgetta, Cinzia & Zeelenberg, Marcel & Ferlazzo, Fabio & D’Olimpio, Francesca, 2012. "Cultural variation in the role of responsibility in regret and disappointment: The Italian case," Journal of Economic Psychology, Elsevier, vol. 33(4), pages 726-737.
    2. Qin, Jie, 2020. "Regret-based capital asset pricing model," Journal of Banking & Finance, Elsevier, vol. 114(C).
    3. Lades, Leonhard K., 2012. "Towards an incentive salience model of intertemporal choice," Journal of Economic Psychology, Elsevier, vol. 33(4), pages 833-841.
    4. Florian Teleaba & Sorin Popescu & Marieta Olaru & Diana Pitic, 2021. "Risks of Observable and Unobservable Biases in Artificial Intelligence Predicting Consumer Choice," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 23(56), pages 102-102, February.
    5. Daniela Raeva & Eric van Dijk & Marcel Zeelenberg, 2011. "How comparing decision outcomes affects subsequent decisions: The carry-over of a comparative mind-set," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 6(4), pages 343-350, June.
    6. Leonhard K. Lades, 2011. "Towards an Incentive Salience Model of Intertemporal Choice," Papers on Economics and Evolution 2011-18, Philipps University Marburg, Department of Geography.
    7. repec:cup:judgdm:v:6:y:2011:i:4:p:343-350 is not listed on IDEAS

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