We propose an extension of the classical regret theory model (Loomes & Sugden, 1982; henceforth LS) incorporating the notion of a reference point. As in LS, the model can account for a number of documented deviations from expected utility theory. In addition, we show that our model is consistent with a class of behaviors known as omission bias, for example, a reluctance to exchange lottery tickets, and generates predictions that are consistent with recent empirical evidence on the common-ratio effect with correlated outcomes. The model also provides a novel interpretation for risk aversion in small stakes, equiprobable gambles. The predictive power of the theory, as well as its relative shortcomings and advantages, is examined and compared to that of other extensions of regret theory and three alternative reference-dependent models. (PsycInfo Database Record (c) 2022 APA, all rights reserved)