Some implications of a more general form of regret theory

G. Loomes, R. Sugden

Research output: Contribution to journalArticlepeer-review

197 Citations (Scopus)

Abstract

Regret theory entails the possibility of non-transitive pairwise choices. It therefore raises questions about how individuals choose from sets of more than two actions, especially when there exists a subset of pairs of actions over which preferences cycle. A generalization of regret theory is suggested and is compared and contrasted with Fishburn's generalization of SSB utility theory. It is also shown that under this generalization an individual with non-transitive pairwise preferences with not be caught in a never-ending cycle and is not vulnerable to being "money-pumped" into bankruptcy.
Original languageEnglish
Pages (from-to)270-287
Number of pages18
JournalJournal of Economic Theory
Volume41
Issue number2
Publication statusPublished - 1 Apr 1987

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