Daily Concept 2602 - Regret Theory

 

Daily Concept 2602 - Regret Theory 

Regret theory states that people anticipate regret if they make the wrong choice, and they consider this anticipation when making decisions. 

Fear of regret can play a significant role in dissuading someone from taking action or motivating a person to take action. 

Regret theory can impact an investor's rational behaviour, impairing their ability to make investment decisions that would benefit them as opposed to harming them.