Publication Type

Journal Article

Version

Postprint

Publication Date

7-2009

Abstract

Decision makers can become trapped by myopic regret avoidance in which rejecting feedback to avoid short-term outcome regret (regret associated with counterfactual outcome comparisons) leads to reduced learning and greater long-term regret over continuing poor decisions. In a series of laboratory experiments involving repeated choices among uncertain monetary prospects, participants primed with outcome regret tended to decline feedback, learned the task slowly or not at all, and performed poorly. This pattern was reversed when decision makers were primed with self-blame regret (regret over an unjustified decision). Further, in a final experiment in which task learning was unnecessary, feedback was more often rejected in the self-blame regret condition than in the outcome regret condition. We discuss the findings in terms of a distinction between two regret components, one associated with outcome evaluation, the other with the justifiability of the decision process used in making the choice.

Keywords

Decision Making, Decision Regret, Feedback Avoidance, Learning, Myopic Regret Avoidance, Regret Aversion, Outcome Regret, Self-blame Regret

Discipline

Business Administration, Management, and Operations | Organizational Behavior and Theory

Research Areas

Organisational Behaviour and Human Resources

Publication

Organizational Behavior and Human Decision Processes

Volume

109

Issue

2

First Page

182

Last Page

189

ISSN

0749-5978

Identifier

10.1016/j.obhdp.2009.05.002

Publisher

Elsevier