Regret Markets

The concept of Regret Insurance is introduced and argued to be a useful extension of the idea of ordinary Call Options.   In this sense, Regret (insurance) contracts represent the purest form of the value of unknown... [ view full abstract ]

The concept of Regret Insurance is introduced and argued to be a useful extension of the idea of ordinary Call Options.  

In this sense, Regret (insurance) contracts represent the purest form of the value of unknown Information.   In the present paper, and argument is made for the potential usefulness of the notion of Regret Insurance within Risk Management, Investment and Portfolio Analysis, and Financial Decisionmaking in general.