Bikhchandani, Sushil, and Uzi Segal. “Transitive Regret”. Boston College Working Papers in Economics 711, 2009.
Preferences may arise from regret, i.e., from comparisons with alternatives forgone by the decision maker. We ask whether regret-based behavior is consistent with non-expected utility theories of transitive choice. We show that the answer is no. If choices are governed by ex ante regret and elation then non-expected utility preferences must be intransitive.