Markdown as a pricing modality is ubiquitous in retail whereas everyday-low-price (EDLP) remains relatively rare (despite its several advantages, such as simplicity). Using a stylized model, we explore whether and why retailers can use either of these pricing modalities as an effective defense against a competitor entering the market with the alternative pricing modality to sell an identical pr...

We consider the framework of stochastic multi-armed bandit problems and study the possibilities and limitations of forecasters that perform an on-line exploration of the arms. These forecasters are assessed in terms of their simple regret, a regret notion that captures the fact that exploration is only constrained by the number of available rounds (not necessarily known in advance), in contrast...

IMPORTANCE To our knowledge, longitudinal assessment of depression, anxiety, and decision regret (a sense of disappointment or dissatisfaction in the decision) in patients undergoing prognostication for uveal melanoma does not exist. OBJECTIVE To report on depression, anxiety, and decision regret before and after testing to estimate uveal melanoma prognosis. DESIGN, SETTING, AND PARTICIPANT...

Many situations involve repeatedly making decisions in an uncertain environment: for instance, deciding what route to drive to work each day, or repeated play of a game against an opponent with an unknown strategy. In this chapter we describe learning algorithms with strong guarantees for settings of this type, along with connections to game-theoretic equilibria when all players in a system are...

Previous research has demonstrated that consistency between people’s behavior and their dispositions has predictive validity for judgments of regret. Research has also shown that differences in the personality variable of action orientation can influence ability to regulate negative affect. The present set of studies was designed to investigate how both consistency factors and action-state pers...

The present article investigates the effectiveness of methods traditionally used to distinguish between the emotions of regret and disappointment and presents a new method — the Regret and Disappointment Scale (RDS) — for assessing the two emotions in decision making research. The validity of the RDS was tested in three studies. Study 1 used two scenarios, one prototypical of regret and the oth...

We investigate the problem of continuous-time causal estimation under a minimax criterion. Let X = {Xt, 0 ≤ t ≤ T} be governed by the probability law Pθ from a class of possible laws indexed by θ ∈ Λ, and Y T be the noise corrupted observations of X available to the estimator. We characterize the estimator minimizing the worst case regret, where regret is the difference between the causal estim...

We develop a novel and generic algorithm for the adversarial multi-armed bandit problem (or more generally the combinatorial semi-bandit problem). When instantiated differently, our algorithm achieves various new data-dependent regret bounds improving previous work. Examples include: 1) a regret bound depending on the variance of only the best arm; 2) a regret bound depending on the first-order...

We discuss the effects of anticipated and experienced regret on decision making under uncertainty. In previous research, using the standard, context-free, gamble paradigm, we found that decision makers anticipate the regret they can experience as a result of post-decisional feedback on forgone outcomes (Zeelenberg, Beattie, van der Pligt, & de Vries, 1996). In the present research we move away ...

Decision makers faced with an opportunity to learn the outcome of a foregone alternative must balance anticipated regret, should that information be unfavorable, with the potential benefits of this information in reducing experienced regret. Counterfactual seeking, the choice to learn more about foregone alternatives, may be a functional, regret-regulating strategy for individuals already exper...