Impact of Actor's Initial State of Engagement in a Course of Action on Judgements of Post-decisional Regret and Joy: Revisiting Kahneman and Tversky (1982).

Abstract

According to the phenomenon commonly known as action effect and vastly replicated across the judgment and decision-making literature, more regret is associated with decisions resulting from action than inaction. Action vs. inaction, however, might either refer to change vs. no change or doing something vs. not doing something. The purpose of this study was to examine the effect of this variation in operationalization of action-inaction on the strength of action effect, for both positive and negative outcomes, across four different domains of employment, finance, education, and health. This was an experimental scenario-based study (N = 215) with four between-subjects conditions varying in outcome valence and the actor's initial state as either engaged or non-engaged in a particular course of action. Action effect was found to be stronger with respect to the initially engaged than the initially non-engaged decision-maker (η_p² = .04), indicating that action as change results in a stronger action effect than action as doing something. The effect of the initial state was also moderated by domain. In addition, we both replicated and went beyond prior empirical literature regarding the effect of outcome valence and domain on action effect, with our findings being mostly consistent across joy and regret. Findings are discussed in light of the norm theory and its key concept of normality and contribute to the literature on moderators of action effect.