Some implications of a more general form of regret theory.

*(English)*Zbl 0633.90003Regret theory entails the possibility of non-transitive pairwise choices. It therefore raises questions about how individuals choose from sets of more than two actions, especially when there exists a subset of pairs of actions over which preferences cycle. A generalization of regret theory is suggested and is compared and contrasted with Fishburn’s generalization of SSB utility theory. It is also shown that under this generalization an individual with non-transitive pairwise preferences will not be caught in a never-ending cycle and is not vulnerable to being “money-pumped” into bankruptcy.

##### Keywords:

Regret theory; non-transitive pairwise choices; SSB utility theory; non- transitive pairwise preferences
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\textit{G. Loomes} and \textit{R. Sugden}, J. Econ. Theory 41, 270--287 (1987; Zbl 0633.90003)

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