Research in Valuation Decision Making Processes: Educational Insights and Perspectives

Abstract

Valuation is inherently a human activity and a judgmental process. In the recent past, a body of behavioral research relating to valuer judgment has raised issues on actual valuer problem-solving behaviors and suggests some ways that valuation decision making can be improved. This paper examines the implications from behavioral research and their potential affect on valuation education. It is argued that it is critical that issues of human behavior and the influences of human judgment on valuation decision making be incorporated into valuation education. Valuation educators will, therefore, need to expose students to current trends in valuation practice and employ teaching strategies that will enable the development of skills in critical and analytical reasoning, information search, and decision making.