Regret Experiment
Subject: Experimental Economics
The individual paper will describe one of the experiments we will discuss in class. The paper should present the motivation for the experiment, include a short literature review, detail the experimental design, report analysis of the results, discussion and conclusion. You should show that you understand the issue at hand and analyze the data intelligently. The paper should 5000 words long (not including tables and figures).
The Experiment introduced in video: https://drive.google.com/file/d/1XaAklgJveDqnmhXw7JCK33soGp6pFUcv/view?usp=sharing
Please watch the video carefully, every stage of the experiment is important.
Note that the data file has 2 tabs: one with the data and another with an explanation for the variables.
Regret: references
1. Bell, David E. (1982), “Regret in decision making under uncertainty”, Operation Research, 30 (5), 961-981
2. Loomes, Graham and Sugden, Robert (1982), “Regret theory: an alternative theory of rational choice under uncertainty”, The Economic Journal, 92 (368), 805-824
3. Bleichrodt, Han and Wakker, Peter P. (2015), “Regret theory: bold alternative to the alternatives”, The Economic Journal, 125 (583), 493-532
4. Gollier, Christian (2018), “Aversion to risk and preference for positively skewed risks”, Economic Theory, 1-29
5. Krahmer, Daniel and Stone, Rebecca (2013), “Anticipated regret as an explanation of uncertainty aversion”, Economic Theory, 52, 709-72
