Regret Aversion and Dynamic Choice

This research looks into the possibility of bringing together two distinct and empirically successful areas of behavioural economics; regret aversion and quasi-hyperbolic discounting. Standard regret aversion theory (Loomes and Sugden 1982, Bell 1982) operates in a world of uncertainty, where regret aversion arises due to the possibility of, having made an initial choice, a more preferable option arising when uncertainty is resolved. However, the common intuition in the literature behind the psychological notion of “regret” does not explicitly mention uncertainty. Merely,