The delay effect, that people discount the near future more than the distant future, has not been verified rigorously. An experiment conducted by us in China confirms that, by separating the delay from the interval, the delay effect exists only within a short delay. The results are reliable,...

This paper examines the aggregate effects of regret in a market where investors maximize expected return while minimizing anticipated regret. In equilibrium, the excess return on a risky asset is proportional to its “regret beta” that is defined with respect to the gap between the market...