Regret (Decision Theory)
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A Regret (Decision Theory) is a Decision Theory that ...
- AKA: Regret (Decision Theory).
- See: Rationality, Decision Theory, Choice, Uncertainty, Regret, Emotion, Reputation, Risk Aversion, Feedback, Human Behavior.
References
2022
- (Wikipedia, 2022) ⇒ https://en.wikipedia.org/wiki/Regret_(decision_theory) Retrieved:2022-1-16.
- In decision theory, on making decisions under uncertainty—should information about the best course of action arrive after taking a fixed decision—the human emotional response of regret is often experienced, and can be measured as the value of difference between a made decision and the optimal decision.
The theory of regret aversion or anticipated regret proposes that when facing a decision, individuals might anticipate regret and thus incorporate in their choice their desire to eliminate or reduce this possibility. Regret is a negative emotion with a powerful social and reputational component, and is central to how humans learn from experience and to the human psychology of risk aversion. Conscious anticipation of regret creates a feedback loop that transcends regret from the emotional realm—often modeled as mere human behavior—into the realm of the rational choice behavior that is modeled in decision theory.
- In decision theory, on making decisions under uncertainty—should information about the best course of action arrive after taking a fixed decision—the human emotional response of regret is often experienced, and can be measured as the value of difference between a made decision and the optimal decision.