ABSTRACT

In an effort to integrate earlier research in behavioral decision theory and to further develop the theoretical foundations for this kind of research, Differentiation and Consolidation (Diff Con) theory was developed by Svenson ( 1992). Diff Con theory deviates from other decision theoretic formulations in that the goal of a decision process is not just to fulfil one or several decision rules but to create, through restructuring and application of the rule(s), an alternative that is sufficiently superior in comparison to its competitor(s). The structuring principles are not derived from one rule only (e.g., SEU or dominance) but from a number of different rules contingent on the situation and the person in that situation. This process is named differentiation and takes place on the hypothetical construct of a differentiation continuum. This process is reflected in, for example, measurable process and structural differentiation processes.