Are Decision Makers Rational in Ambiguous Situations?

This research work analyzes human behavior in complex situations and explains how decisions makers act in ambiguous situations. The objective of this research work is to study the sunk cost effect and the completion percentage effect of an investment project in a decision-making process. This research work uses a “retrospective rationality” approach to justify irrational behaviors such as the sunk cost effect, the completion percentage effect of an investment project and the irrational escalation since decision-makers are repeatedly affected by the decisions on past irreversible investments. This research work evaluates three sunk cost levels, and three completion percentage levels of an investment project, besides three neutral situations in a business environment and a personal decision situation. Graduate students in three Portuguese Management Schools responded to the questionnaires. Model results show that the value of resources invested is crucial for understanding the students’ rational behavior, who participated in this research work. These results disclose statistical evidence that the information on sunk costs and completion percentage of an investment project determines human behavior under irrational escalation in ambiguous situations. As a consequence, decision makers have the opportunity to interpret their decisions, since the scenarios do not allow a unique definition of rational choice, it is not correct to judge the irrational decision makers that decide to continue to invest in ambiguous situations. Keywords: Human Behavior, Sunk costs Effect, Completion Percentage Effect of an Investment Project, Irrational Escalation, Ambiguous Situations.

Cultural Values Change in the Rehabilitation of Historic Schools in Portugal

Despite the importance of the preservation of the historic built environment for the benefit of present and future generations, there is a lack of knowledge of the effects of architectural rehabilitation decisions on the cultural significance of historic buildings. Architectural heritage conservation literature has focused almost exclusively on providing principles and guidelines, describing intervention methodologies, and discussing predicted impacts of design on material values. This thesis argues that a focus on the actual effects is needed if the sociocultural sustainability of historic buildings significance is to be achieved. Supported by an extensive literature review and informed by personal insights from the researcher’s everyday practice, an adapted model of the Theory of Change based on Weiss (1995) was designed, providing a tool to evaluate the effects of rehabilitation on cultural significance [ERECS]. Using a selection of six recently rehabilitated historic secondary schools in Portugal (liceus), this research investigated architectural decisions and their effects on the cultural values of this building typology for education, focusing on three objectives, corresponding to three stages of interventions: understanding the existing cultural significance, identifying the design strategies applied and assessing the short-term effects of design decisions on the cultural values. Stressing the role of stakeholders in rehabilitation processes, data were collected from the buildings and architectural projects, the decision makers in the conservation process, and the school community. Although confirming that the evaluation of the effects of architectural decisions on cultural values is a complex task, the findings demonstrate that the historic liceus have historical, architectural and sociocultural values, and whilst strategies did not value social values, material cultural values were generally considered and preserved, contributing to the enhancement of intangible values. The implications of this theory-based and evidence-based research highlight the importance of evaluating actual effects for cultural heritage theory, architectural conservation practice and heritage management policy.