Dynamic Purchase Decisions Under Regret: Price and Availability

Published Online:https://doi.org/10.1287/deca.1110.0227

References

  • Armor D. A., Taylor S. E. Situated optimism: Specific outcome expectancies and self-regulation. Adv. Experiment. Soc. Psych. (1998) 30:309–379CrossrefGoogle Scholar
  • Barberis N., Huang M., Thaler R. H. Individual preferences, monetary gambles, and stock market participation: A case for narrow framing. Amer. Econom. Rev. (2006) 96(4):1069–1090CrossrefGoogle Scholar
  • Bell D. E. Regret in decision making under uncertainty. Oper. Res. (1982) 30(5):961–981LinkGoogle Scholar
  • Bleichrodt H., Cillo A., Diecidue E. A quantitative measurement of regret theory. Management Sci. (2010) 56(1):161–175LinkGoogle Scholar
  • Braun M., Muermann A. The impact of regret on the demand for insurance. J. Risk Insurance (2004) 71(4):737–767CrossrefGoogle Scholar
  • Cooke A. D. J., Meyvis T., Schwartz A. Avoiding future regret in purchase-timing decisions. J. Consumer Res. (2001) 27(4):447–459CrossrefGoogle Scholar
  • Dana J. D. Advance-purchase discounts and price discrimination in competitive markets. J. Political Econom. (1998) 106(2):395–422CrossrefGoogle Scholar
  • Edwards W. Probability learning in 1000 trials. J. Experiment. Psych. (1961) 62(4):385–394CrossrefGoogle Scholar
  • El-Gamal M. A., Grether D. M. Are people Bayesian? Uncovering behavioral strategies. J. Amer. Statist. Assoc. (1995) 90(432):1137–1145CrossrefGoogle Scholar
  • Engelbrecht-Wiggans R., Katok E. Regret and feedback information in first-price sealed-bid auctions. Management Sci. (2008) 54(4):808–819LinkGoogle Scholar
  • Engelbrecht-Wiggans R., Katok E. A direct test of risk aversion and regret in first price sealed-bid auctions. Decision Anal. (2009) 6(2):75–86LinkGoogle Scholar
  • Filiz-Ozbay E., Ozbay E. Y. Auctions with anticipated regret: Theory and experiment. Amer. Econom. Rev. (2007) 97(4):1407–1418CrossrefGoogle Scholar
  • Fishburn P. C. Nontransitive preferences in decision theory. J. Risk Uncertainty (1991) 4(2):113–134CrossrefGoogle Scholar
  • Frederick S., Loewenstein G., O'Donoghue T. Time discounting and time preference: A critical review. J. Econom. Literature (2002) 40(2):351–401CrossrefGoogle Scholar
  • Gilovich T., Medvec V. H. The experience of regret: What, when, and why. Psych. Rev. (1995) 102(2):379–395CrossrefGoogle Scholar
  • Gollier C., Salanié B. Individual decisions under risk, risk sharing and asset prices with regret. (2006) . Working paper, University of Toulouse, Toulouse, FranceGoogle Scholar
  • Gundepudi P., Rudi N., Seidmann A. Forward vs. spot buying of information goods on web: Analyzing the consumer decision process. J. Management Inform. Systems (2001) 18(2):107–131CrossrefGoogle Scholar
  • Hoch S. J., Loewenstein G. F. Time-inconsistent preferences and consumer self-control. J. Consumer Res. (1991) 17(4):492–507CrossrefGoogle Scholar
  • Holt C. A., Smith A. M. An update on Bayesian updating. J. Econom. Behav. Organ. (2009) 69(2):125–134CrossrefGoogle Scholar
  • Huber J., Payne J. W., Puto C. Adding asymmetrically dominated alternatives: Violations of regularity and the similarity hypothesis. J. Consumer Res. (1982) 9(1):90–98CrossrefGoogle Scholar
  • Inman J. J., Zeelenberg M. Regret in repeat purchase versus switching decisions: The attenuating role of decision justifiability. J. Consumer Res. (2002) 29(1):116–128CrossrefGoogle Scholar
  • Kahneman D., Slovic P., Tversky A.Judgment Under Uncertainty: Heuristics and Biases (1982) (Cambridge University Press, Cambridge, UK) CrossrefGoogle Scholar
  • Larrick R. P. Motivational factors in decision theories: The role of self-protection. Psych. Bull. (1993) 113(3):440–450CrossrefGoogle Scholar
  • Loomes G., Sugden R. Regret theory: An alternative theory of rational choice under uncertainty. Econom. J. (1982) 92(368):805–824Google Scholar
  • Mellers B. A., McGraw A. P. Anticipated emotions as guides to choice. Current Directions Psych. Sci. (2001) 10(6):210–214CrossrefGoogle Scholar
  • Michenaud S., Solnik B. Applying regret theory to investment choices: Currency hedging decisions. J. Internat. Money Finance (2008) 27(5):677–694CrossrefGoogle Scholar
  • Muermann A., Volkman J. M. Regret, pride, and the disposition effect. (2007) . Working paper, University of Pennsylvania, PhiladelphiaGoogle Scholar
  • Muermann A., Mitchell O. S., Volkman J. M. Regret, portfolio choice, and guarantees in defined contribution schemes. Insurance, Math. Econom. (2006) 39(2):219–229CrossrefGoogle Scholar
  • Müller A., Stoyan D.Comparison Methods for Stochastic Models and Risks (2002) (John Wiley & Sons, Chichester, UK) Google Scholar
  • Nasiry J., Popescu I. Advance selling when consumers regret. Management Sci. (2012) . ForthcomingLinkGoogle Scholar
  • Patrick V. M., Lancellotti M., de Mello G. E. Coping with it: Regret for action vs. inaction in the consumer context. Adv. Consumer Res. (2003) 30:241–248Google Scholar
  • Perakis G., Roels G. Regret in the newsvendor model with partial information. Oper. Res. (2008) 56(1):188–203LinkGoogle Scholar
  • Rabin M. Risk aversion and expected-utility theory: A calibration theorem. Econometrica (2000) 68(5):1281–1292CrossrefGoogle Scholar
  • Shefrin H., Statman M. The disposition to sell winners too early and ride losers too long: Theory and evidence. J. Finance (1985) 40(3):777–790CrossrefGoogle Scholar
  • Shen Z. J. M., Su X. Customer behavior modeling in revenue management and auctions: A review and new research opportunities. Production Oper. Management (2007) 16(6):713–728CrossrefGoogle Scholar
  • Simonson I. The influence of anticipating regret and responsibility on purchase decisions. J. Consumer Res. (1992) 19(1):105–118CrossrefGoogle Scholar
  • Smith R. D. Is regret theory an alternative basis for estimating the value of healthcare interventions? Health Policy (1996) 37(2):105–115CrossrefGoogle Scholar
  • Su X. A model of consumer inertia with applications to dynamic pricing. Production Oper. Management (2009) 18(4):365–380CrossrefGoogle Scholar
  • Su X. Optimal pricing with speculators and strategic consumers. Management Sci. (2010) 56(1):25–40LinkGoogle Scholar
  • Su X., Zhang F. Strategic customer behavior, commitment, and supply chain performance. Management Sci. (2008) 54(10):1759–1773LinkGoogle Scholar
  • Su X., Zhang F. On the value of commitment and availability guarantees when selling to strategic consumers. Management Sci. (2009) 55(5):713–726LinkGoogle Scholar
  • Tsiros M., Mittal V. Regret: A model of its antecedents and consequences in consumer decision making. J. Consumer Res. (2000) 401–417CrossrefGoogle Scholar
  • von Neumann J., Morgenstern O.Theory of Games and Economic Behavior (1947) (Princeton University Press, Princeton, NJ) Google Scholar
  • Wilson T. D., Gilbert D. T. Affective forecasting. Adv. Experiment. Soc. Psych. (2003) 35:345–411CrossrefGoogle Scholar
  • Xie J., Shugan S. M. Electronic tickets, smart cards, and online prepayments: When and how to advance sell. Marketing Sci. (2001) 20(3):219–243LinkGoogle Scholar
  • Yaniv G. Withholding information from cancer patients as a physician's decision under risk. Medical Decision Making (2000) 20(2):216–227CrossrefGoogle Scholar
  • Zeelenberg M. Anticipated regret, expected feedback and behavioral decision making. J. Behav. Decision Making (1999a) 12(2):93–106CrossrefGoogle Scholar
  • Zeelenberg M. The use of crying over spilled milk: A note on the rationality and functionality of regret. Philos. Psych. (1999b) 12(3):325–340CrossrefGoogle Scholar
  • Zeelenberg M., Beattie J., Van der Pligt J., De Vries N. K. Consequences of regret aversion: Effect of expected feedback on risky decision making. Organ. Behav. Human Decision Processes (1996) 65(2):148–158CrossrefGoogle Scholar
  • Zeelenberg M., Van den Bos K., Van Dijk E., Pieters R. The inaction effect in the psychology of regret. J. Personality Soc. Psych. (2002) 82(3):314–327CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.