Yaniv Shani

Generality and Cultural Variation in the Experience of Regret

Regret is the prototypical decision-related emotion. Most theory and research on regret comes from the United States and Europe, but recent research has suggested potential cross-cultural differences in regret. We examined generality and cultural variation in the experience of regret. A cross-cultural study compared experiences of regret with those of disappointment and guilt as reported by participants from the United States (n = 143), the Netherlands (n = 147), Israel (n = 148), and Taiwan (n = 115). We found strong evidence for generality of the distinct emotion components of regret, compared with those of disappointment and guilt. We also found cultural variation in the frequency and intensity of regret in intrapersonal situations (regrets about outcomes affecting the self) and interpersonal regrets (regrets about outcomes affecting others). Whereas in the U.S. sample, regret was experienced more intensely in intrapersonal than interpersonal situations, both emotions were experienced more intensely in interpersonal situations in the Taiwanese sample.

Using an Eye Tracker to Examine Behavioral Biases in Investment Tasks: An Experimental Study

Contrary to the premise of rational models, which suggests that investors’ aggregate portfolios are the appropriate informational asset for evaluating a file performance, we find, using an eye tracker, that investors spend more time looking at performances of an individual asset than at the performances of the overall aggregated portfolio and at the net value change more than the assets’ final value. We also find that investors look at the monetary value change longer than at change in percentages. Specifically, participants look longer at the value change of gaining assets than at the value change of losing assets. We propose the possibility that investors are not only engaged in judgment when evaluating their portfolio (leading to loss aversion and mental accounting) but may also be predisposed to looking for reassuring elements within it. Thus, it may be that humans use mental accounting by nature and not necessarily by judgment.

Post-decisional information search : Balancing the pains of suspecting the worst with the comforts of knowing the worst

Selective exposure normally refers to individuals’ tendency to favor information that reinforces and is consonant with personal views while avoiding information that contradicts their views. In this article the authors explain why consumers are willing to seek (post-decisional) information, particularly when that information might reveal they made a bad decision. Interestingly, this new approach to selective exposure also explains why individuals might choose to temporarily avoid important (and even potentially reassuring) information that may serve their future goals. We propose the avoidance of important knowledge and the search for painful (as well non-instrumental) knowledge as a counterintuitive strategy for regulating the intensity of negative feelings experienced throughout ones day-to-day affairs. This research was supported by The Henry Crown Institute of Business Research in Israel.

What is more important, the outcome or the probability?

According to basic economic theory, people wish to maximize their expected utility. In order to do so they should integrate the likelihood (i.e. probability) and the possible outcomes (good or bad). Nevertheless, research has shown that people do not always account for their decisions on the basis of a rational or a cold evaluation of utility. We suggest that when choosing between two risky alternatives people determine the relative perceived importance of the outcomes and probabilities before making their choice. If the outcome is more important, they will tend to choose the option with the best outcome. If the probability is more important, they will tend to choose the option with the higher probability for the desirable outcome, or the option with the lower probability for the undesirable outcome. This means that people maximize their utility based on their perceived importance of probabilities and outcomes. To test our argument, we conducted an experiment in which we asked the participants to decide between two uncertain outcomes. The results support our claim that the importance of the probability and the importance of the outcome affect the choice between two risky alternatives.

The Dark Side of Giving Monetary Gifts

Social events such as weddings, christenings, and bar mitzvahs are very important to many people. They commemorate noteworthy occasions and enable hosts and guests to rejoice with and honor each other. Recently, a shift has occurred whereby hosts ask guests for money, instead of presents, as gifts at such social events (particularly weddings). Interestingly, hosts report feeling uncomfortable for making this request. In the present research, we ask whether these feelings are justified. We ask whether giving money at social events troubles guests; we explore their cognitions, emotions, and behavior; and if giving money troubles them, we investigate whether these thoughts can somehow be lessened.