Research support from the Sol Snider Center for Entrepreneurship at the Wharton School, University of Pennsylvania and the Division of Research, Harvard Business School is gratefully acknowledged. We have benefited from the comments of seminar participants at the Dallas ORSA/TIMS Meeting; Graduate School of Business, University of Chicago; Sloan School of Management, MIT; Anderson School of Man...

Decisions are powerfully affected by anticipated regret, and people anticipate feeling more regret when they lose by a narrow margin than when they lose by a wide margin. But research suggests that people are remarkably good at avoiding self-blame, and hence they may be better at avoiding regret than they realize. Four studies measured people's anticipations and experiences of regret and self-b...

The present paper begins by deriving an instantaneous formulation for the backwardlooking (reinforcement based learning) satisfaction balance model of Gray and Tallman (1984). This model is then used to generate interactional data from four simulated agents in a network interaction experiment. Because this initial model does not generate stable interaction structures in the network experiment, ...