Applying reference-dependence to understand the association between economic decision-making and affective states: depressive symptoms and regret

Abstract

With this thesis, I aim to provide a better understanding of individual economic decision-making during affective states.

Chapter 1 reports results from three studies (two general population and a clinical sample). In the general population samples, anhedonia was associated with higher parametric reference points and feeling depressed was associated with lower reference points. Additionally, feeling depressed was associated with lower stated long-term income expectations. In the clinical cohort, while total depression severity (across symptoms) was weakly negatively associated with reward expectations; the severity of anhedonia was associated with lower reward expectations and feeling depressed was associated with higher reward expectations.

Chapter 2 describes results from two studies investigating the convergent validity of regret. Participants generally exhibited behavioural regret aversion, although there was individual variation in whether behaviour agreed with Regret theory. Importantly, the link between self-reported regret and behavioural regret aversion was weak and task dependent. Otherwise, post-decisional affect ratings were negative following feedback designed to elicit regret, and this pattern was stronger for those who self-reported a greater tendency towards regret.

Chapter 3 presents findings (same data as Ch 2) that indicated self-reported regret proneness was robustly associated with depressive symptoms. However, there was no evidence of depressive symptoms being associated with reporting more or nor less negative affect following regret feedback. Furthermore, there was at best weak/mixed evidence of depressive symptoms being associated with regret aversion. Anhedonia appeared to blunt responsiveness to the potential regret/relief of an option during (one) experimental decision-making task. However, depressive symptoms generally did not moderate the behavioural effects of regret during decision-making.