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Testing for feedback-conditional regret effects using a natural lottery

Author

Listed:
  • Steven Humphrey

    (CeDEx, School of Economics, University of Nottingham)

  • Paul Mann
  • Chris Starmer

Abstract

We report the results of an experimental test for feedback-conditional regret effects using a naturally occurring gamble. The properties of this gamble are likely to engage decision-makers to a greater extent than conventional abstract laboratory gambles, and be more generally exhibited by real world objects of choice. We argue that this conveys a higher than typical degree of external validity on our findings. We observe that feedback on the outcome of foregone choices enhances the salience of regret as a decision motive.

Suggested Citation

  • Steven Humphrey & Paul Mann & Chris Starmer, 2005. "Testing for feedback-conditional regret effects using a natural lottery," Discussion Papers 2005-07, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    • Handle: RePEc:not:notcdx:2005-07
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    File URL: https://www.nottingham.ac.uk/cedex/documents/papers/2005-07.pdf
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    References listed on IDEAS

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    Cited by:

    1. Herweg, Fabian & Müller, Daniel, 2021. "A comparison of regret theory and salience theory for decisions under risk," Journal of Economic Theory, Elsevier, vol. 193(C).

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    More about this item

    Keywords

    regret theory; outcome feedback; natural lottery; external validity;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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