Production and insurance under regret aversion

► This paper examines the behavior of a regret-averse producer facing revenue risk. ► The regret-averse producer never fully insures against the revenue risk. ► The regret-averse producer may choose not to purchase actuarially fair insurance. ► The regret-averse producer may produce less as compared to the case of no insurance. ► These results are distinct from those under pure risk aversion.