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Regret Minimization

Regret minimization is a decision strategy for reducing future regret. It weighs how much regret a poor decision might cause and selects the option that would leave less of it. That later regret counts along with the outcome itself.

The idea

Jeff Bezos popularized this concept with his “Regret Minimization Framework,” which he used to decide whether to leave his job to start Amazon. He projected himself to age 80 and asked which decision he would regret less. Staying in his job was one option. Pursuing his entrepreneurial dream was the other. He chose the path with less potential regret, the one that favored long-term satisfaction over short-term risk.

When to use it

Regret minimization applies to life decisions such as careers and personal relationships. The question is which option would leave less regret over the long run.