Uncertainty phenomenon in property valuation
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Property valuation in numerous cases is carried out based only on a few element transaction datasets. According to the valuation principles, this decides on the necessity to apply the method of comparing properties in pairs. The determination of the market value of property with the use of such method is in fact a procedure in uncertainty. The uncertainty occurring in the property valuation process may be construed on the basis of the theory of games, using two-player zero sum games so-called games with Nature. The solutions based on the equilibrium phenomenon may play a significant complementary role in the property valuation process, including, but not limited to that of, valuation error analysis instrument.
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