A series of experiments were conducted to examine valuation behaviour in the UK, the USA, and New Zealand (NZ). Professional valuers from all three countries participated in the study whose findings support the notion that the US normative model is cognitively demanding and that greater departures from it result in reduced cognitive effort. The study also concluded that subjects from cultures requiring disclosure (USA and NZ) examined a significantly greater number of sales than did subjects from the UK where disclosure is uncommon. Finally, while valuers perhaps ought to increase sales search in unfamiliar markets, this research revealed no evidence that they do so. These findings are consistent with the need to seek cognitive efficiency and reduce cognitive effort even at the expense of performance quality.
Diaz, J., Gallimore, P. and Levy, D. (2004), "Multicultural examination of valuation behaviour", Journal of Property Investment & Finance, Vol. 22 No. 4, pp. 339-346. https://doi.org/10.1108/14635780410550894
Emerald Group Publishing Limited
Copyright © 2004, Emerald Group Publishing Limited