High-stake decision making – An empirical study based on house purchase processes

High-stake decision making, such as corporate strategic planning or dissolution of international conflicts is characterized by a high level of uncertainty and a great impact on future welfare. Usually, there are many conflicting criteria/attributes involved, and their importance varies with time and situation variables. In order to understand human decision/behavior in a high-stake decision process, a sample of 108 house purchase decision processes is systematically observed and studied. Using Yu's [9] paradigm of behavior bases and the least resistance principle, decision net and some technical measurements as tools, we shall report

(i) how goal setting and state valuation can be suggested and organized for decision makers,

(ii) how the final choice can be predicted in terms of the least resistance principle by using compromise solution approximation,

(iii) how cognitive changes occur during the decision processes,

(iv) how familiarity and time stress can affect the process,

(v) how consensus can emerge when team decision makers (husbands and wives) are involved, and

(vi) possible means for decision aid and further research.