Paul owns shares in company A. During the past year he considered switching to stock in company B, but he decided against it. He now learns that he would have been better off by $1,200 if he had switched to the stock of company B. 

George owned shares in company B. During the last year he switched to stock company A. He now learns that he would have been better off by $1,200 if he had kept his stock in company B. 

 Who feels greater regret?

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Aside

4 thoughts on “

    1. Interesting. I picked the second guy. My reasoning was the second guy actively made a bad decision, whereas the first guy failed to make a good decision. If I were the second guy my thought would be “my decision was so bad, I would have been better off had I done nothing.”
      The point of the question is to highlight that the situations are objectively identical. Both people now own stock A and both would be $1,200 better off had they owned stock B but we still apply greater regret to one over the other.

      1. I saw it as something of a personality analysis, are you risk averse or do you embrace it? I embrace it, I’d rather take the risk, explore, experiment and push. Sure it goes wrong sometimes, but that’s life.

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