Title

Regret Aversion in Reason-based Choice

Publication Type

Journal Article

Version

Postprint

Publication Date

7-2011

Abstract

This research examines the moderating role of regret aversion in reason-based choice. Earlier research has shown that regret aversion and reason-based choice effects are linked through a common emphasis on decision justification, and that a simple manipulation of regret salience can eliminate the decoy effect, a well-known reason-based choice effect. We show here that the effect of regret salience varies in theory-relevant ways from one reason-based choice effect to another. For effects such as the select/reject and decoy effect, both of which were independently judged to be unreasonable bases for deciding, regret salience eliminated the effect. For the most-important attribute effect that is judged to be normatively acceptable, however, regret salience amplified the effect. Anticipated self-blame regret and perceived decision justifiability consistently predicted preferences and thus offer a parsimonious account of both attenuation and amplification of these reason-based choice effects.

Keywords

Decision justification, Reason-based choice, Regret, Regret aversion, Decoy effect, Accept/reject effect, Most important attribute effect

Discipline

Organizational Behavior and Theory | Sales and Merchandising

Research Areas

Organisational Behaviour and Human Resources

Publication

Theory and Decision

Volume

73

Issue

1

First Page

35

Last Page

51

ISSN

0040-5833

Identifier

10.1007/s11238-011-9269-0

Publisher

Springer