Myopic Regret Avoidance: Feedback Avoidance and Learning in Repeated Decision Making

• Main Authors: REB, Jochen, CONNOLLY, Terry
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2009
• Subjects: Decision Making; Decision Regret; Feedback Avoidance; Learning; Myopic Regret Avoidance; Regret Aversion; Outcome Regret; Self-blame Regret; Organizational Behavior and Theory
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/1076; https://ink.library.smu.edu.sg/context/lkcsb_research/article/2075/viewcontent/RebJMyopicRegretAvoidance_FeedbackAvoidance.pdf
• Institution: Singapore Management University

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 ex...