The One That Got Away: Overestimation of Forgone Alternatives as a Hidden Source of Regret

Abstract

Past research has established that observing the outcomes of forgone alternatives is an important driver of regret. In this research, we predicted and empirically corroborated a seemingly opposite result: Participants in our studies were more likely to experience regret when they did not observe a forgone outcome than when it was revealed. Our prediction drew on two theoretical observations. First, feelings of regret frequently stem from comparing a chosen option with one’s belief about what the forgone alternative would have been. Second, when there are many alternatives to choose from under uncertainty, the perceived attractiveness of the almost-chosen alternative tends to exceed its reality. In four preregistered studies (Ns = 800, 599, 150, and 197 adults), we found that participants predictably overestimated the forgone path, and this overestimation caused undue regret. We discuss the psychological implications of this hidden source of regret and reconcile the ostensible contradiction with past research.