Regret Aversion

What is regret aversion?

Regret aversion is a tendency to choose in ways that avoid anticipated regret: the feeling that another choice would have produced a better outcome.

Regret aversion vs disappointment

In Loomes and Sugden’s regret theory (1982), the value of an outcome depends partly on comparison with what an unchosen action would have produced. This differs from disappointment about an outcome compared with one's expectations.

Regret aversion examples

Anticipated regret does not always favor caution or inaction. A person can regret a missed opportunity as well as a failed gamble. Its effect depends on the alternatives, possible outcomes and whether comparisons will become known. For example, someone might avoid buying an expensive product to escape regretting a waste of money, or buy it to avoid regretting a missed opportunity. Anticipating regret does not tell us which choice is better.