Decision theory and real estate investment
Journal of Property Valuation and Investment
ISSN: 0960-2712
Article publication date: 1 August 1997
Abstract
Explains that the focus of decision theory is on the mathematical models. These may be probability based; loss functions or other forms of statistical representations of judgements. Yet, much of decision theory does not lie entirely within any one discipline: it draws on psychology, economics, mathematics, statistics, social sciences and many other areas of study. Investigates investors’ perceptions and attitudes towards real estate. Highlights the important difference between theoretical exposure levels and pragmatic business considerations. Suggests a prescriptive model to explore judgements, beliefs and preferences of decision makers and to inform decision making. Examines the concept of risk and its place in developing a prescriptive model. Maintains that a decision must be judged on factors other than the risk of a single outcome.
Keywords
Citation
French, N. and French, S. (1997), "Decision theory and real estate investment", Journal of Property Valuation and Investment, Vol. 15 No. 3, pp. 226-232. https://doi.org/10.1108/14635789710184943
Publisher
:MCB UP Ltd
Copyright © 1997, MCB UP Limited