Researcher ORCID Identifier

0009-0001-1016-3183

Graduation Year

2026

Date of Submission

12-2025

Document Type

Campus Only Senior Thesis

Degree Name

Bachelor of Arts

Department

Economics

Second Department

Philosophy, Politics, and Economics (PPE)

Reader 1

Peter Kelly

Rights Information

@2025 Jian Ke

Abstract

Why does investor regret cut so deep, and what, if anything, can be done about it? This study investigates the machinery of regret by comparing the decision-making of 30 venture capitalists and 302 retail investors. Using a mixed-methods approach that combines quantitative survey analysis with candid, semi-structured interviews, the research models a behavioral Regret Minimization Index (RMI) to uncover which strategies actually help investors learn from their mistakes. The findings tell a different story than the one commonly told in finance. First, the conventional wisdom to “focus on the process” proves to be surprisingly hollow. A process-oriented mindset showed no significant relationship with lower regret for either professional or retail investors. Second, what does appear to buffer against regret are more concrete, earned attributes: years of market experience and a consistent approach to decision-making were both associated with significantly less regret. Finally, in a counterintuitive twist, the very act of assigning blame for an outcome—whether pointing the finger inward or outward at the market—is linked with feeling more regret, not less. The major implication of this work is that managing regret is less about adopting an abstract philosophy and more about the slow, embodied learning that comes from experience. It suggests that the most effective path to minimizing regret may not be to find a reason for failure, but to develop the consistency to withstand it.

Download

This thesis is restricted to the Claremont Colleges current faculty, students, and staff.

Share

COinS