This refers to the theory that while making decisions under uncertainty, apart from the possible benefits of their decisions, people also take into account the likely regret that they will experience in case their decisions fail to yield the expected benefits. Further, the delayed feedback that people receive about what they should have done after failing to achieve the desired benefit can cause them to experience regret. Regret theory was first developed by British economists Graham Loomes and Robert Sugden in their 1982 paper “Regret theory: An alternative theory of rational choice under uncertainty”.

Source: The Hindu June 03, 2019 19:41 UTC