Urban land development based on possibility theory

In this paper, urban land development problem is considered, that is, whether the landowner should construct the building at present for sale in the future with considering the uncertainty of building price. Uncertainty of building price is characterized by possibility distribution to reflect the potential how much the building price will be in the future. Two focus points, called active focus point and passive focus point are introduced as sorts of equilibriums for balancing utility and possibility to show which values should be considered for making decision with possibilistic information. So that landowners can be classified into active investor and passive investor according to which kind of focus point is used for decision. Whether to construct a building at present is judged by possibility and necessity measures. The proposed method seems more reasonable for such one-shot decision problem than maximizing expected utility in probability framework.