The Power of Regret
A simple game shows how fear of regret shapes decisions. The post The Power of Regret appeared first on Nautilus.
One of the primary motivators of human behavior is avoiding regret. Before the legendary behavioral economists Daniel Kahneman and Amos Tversky formalized prospect theory and loss aversion, they believed that regret avoidance was at the root of the human behaviors they were studying. However, they learned that there are behaviors that regret avoidance could not explain and were led to a broader picture.
Let’s take a look at a simple game that sheds a bit more light on the
