Regret Aversion

Regret aversion describes how the human emotional response of regret can influence decision making under uncertainty. When people choose between options without complete information, they may later feel regret on discovering that a different choice would have produced a better outcome. Regret aversion theory holds that decision makers do not only feel regret after the fact but actively anticipate potential future regret and factor that anticipation into a present choice, which can lead them to select options that minimize expected regret even when those options are not the mathematically optimal choice, helping to explain decision patterns such as status quo bias, inaction inertia, and avoidance of choices that invite an easily imagined better alternative. This description is adapted from Wikipedia contributors under CC BY-SA 4.0; changes were made. https://creativecommons.org/licenses/by-sa/4.0/