Regret theory differs from Expected Utility theory in which way?
A) Expected Utility theory assumes the decision-maker is a rational utility maximizer, whereas regret theory does not.
B) Expected Utility Theory assumes risk aversion, not regret aversion.
C) Expected Utility Theory relies on the independence axiom. Regret Theory relaxes the independence axiom.
D) Regret theory is a form of Expected Utility Theory.

Question

Quizplus · Accepted Answer

Regret Theory relaxes the independence axiom, which is a key assumption in Expected Utility Theory.

Regret Theory Differs from Expected Utility Theory in Which Way