I need help with this question. I need a good, thorough explanation.?

Question

At times we all regret decisions. Does this necessarily mean we did not use the economic decision rule when making decision?

Answer 1

There is no single decision rule in economics. When it comes to making decisions, economics draws heavily on statistical decision theory. And statistical decision theory suggests that there are at least two approaches to decision-making: an individual may attempt to maximize gains (risk-seeking) or to minimize losses (risk avoidance, aka regret minimization). Economics recognizes that some individuals are risk seekers, while others are regret minimizers...

What makes it all really weird is that the same individual can display both risk-seeking and risk-averting traits, depending on how much is at stake. People routinely blow a few dollars here and there on lottery tickets, while at the same time carrying large-denomination life and property insurance policies...

Answer 2

hey would you use the economic decision when this decision would reflect the arts or something. And hen here here rules o making decision? Decisions are based upon a logical answer in the brain or a gut feeling. We all regret decisions but thats just what humans do. You must be a drone or something. Using the economic decision.

Answer 3

an economic decision would be the most efficient, but efficiency isn't equated with happiness. A decision can be efficient but not make a person happy and therefore lead to regret.

i had an econ teacher ask us repeatedly what we thought fair and and efficient meant...it's a tough question to answer...

Answer 4

No, it means u didn't take the time to focus on that decision and take it seriously.

Answer 5

That's deep.
Too deep for me.