Study analyzes regret and gambling decisions
Good decisions determine the long-term gambling career of each person, and a new study shows that the results may have more to do with our state of mind than previously thought.
The new study comes from Temple University faculty member Crystal Reeck, whose paper was recently accepted for publication in the journal Cognition and Emotion. The paper, titled “Reining in regret: emotion regulation modulates regret in decision making,” outlines how our memories can be reimagined to change our feelings of regret—and ultimately our gambling decisions in the here and now. The study was co-authored by Kevin LaBar, a Professor of Psychology and Neuroscience at Duke University.
Regret is really a great example of an emotion that can have a profound influence on?decision-making.”
Reeck, Associate Professor of Marketing and the Associate Director of the Center for Applied Research in Decision Making in Temple’s Fox School of Business, said: “Regret is really a great example of an emotion that can have a profound influence on?decision-making. With regret, we often wish we had done something differently, and that then leads us to change our approach moving forward.”
Reeck went on to say that people become interested in regret due to its profound influence on people’s behavior. Her hypothesis on the consequences of unmanaged regret speaks to how people approach wins and losses in gambling, and whether those wins or losses lead to suboptimal decisions. She added: “So, if I’m worried about a very small risk of losing a lot of money, it might lead me to avoid what would otherwise be a really good investment because I’m worried about anticipating that regret.”
Study utilized results from real bets
The study relied on more than self-reports or meta-analysis. For the new study, Reeck and her colleague asked 60 participants to place real bets where they could win or lose money. The participants were then asked to utilize two specific emotional regulation strategies: the portfolio approach, or the immediate results approach.
Referring to the portfolio approach, Reeck said: “Essentially, you’re going to win some and you’re going to lose some when it comes to making decisions. Don’t worry about that, just try to come out ahead overall.”
With the other strategy, Reeck asked participants to focus on the immediate impact of each gamble as though it was all that mattered. Participants who used the immediate results strategy were far more likely to experience regret and inhibition for their next gambling decisions. The participants overemphasized the results rather than the overall portfolio of their wins and losses. In other words, participants who used the portfolio approach still appreciated the times they won, both recognizing their long-term results and whether they could have suffered far greater losses.
when you try to focus on the gains, it is easier to not be bogged down by past regrets”
According to Reeck, that’s the approach that people should use when looking at past regrets in life, too, saying: “When people look at their past decisions like that and instead focus on the good, they see that overall, they are coming out ahead. That’s true for a lot of us. We are all going to experience some losses. That’s inevitable. But when you try to focus on the gains, it is easier to not be bogged down by past regrets.”