Regret Aversion in Reason-based Choice

• Main Authors: CONNOLLY, Terry, REB, Jochen
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2011
• Subjects: Decision justification; Reason-based choice; Regret; Regret aversion; Decoy effect; Accept/reject effect; Most important attribute effect; Organizational Behavior and Theory; Sales and Merchandising
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/3155; https://ink.library.smu.edu.sg/context/lkcsb_research/article/4154/viewcontent/RegretAversionRBC__2_.pdf
• Institution: Singapore Management University

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.