DIFFERENTIATION AND CONSOLIDATION THEORY OF HUMAN DECISION-MAKING - A FRAME OF REFERENCE FOR THE STUDY OF PREDECISION AND POSTDECISION PROCESSES

Differentiation and Consolidation Theory of decision making models human decision making as an active process in which one alternative is gradually differentiated from other available alternatives. The theory is based on the assumption that it is not sufficient to choose the best alternative. but that a decision involves the selection and creation of a candidate that is sufficiently superior for a decision. This is achieved in differentiation processes which are wholistic, structural or process related. To exemplify, structural differentiation includes both facts and attractiveness restructuring. Following a decision, the theory predicts consolidation processes which work in favor of the chosen alternative. Both differentiation and consolidation are driven by the fact that through experience with the impredictability of the future, a decision maker has learned to prepare for threats against the chosen alternative. The further this alternative has been differentiated and consolidated, the less the risk of post-decision ambiguity, regret or decision reversal. The study is concluded with references to other decision theories some of which are viewed as subtheories of Differentiation and Consolidation Theory.