This paper gives, using the concept of conditional fuzzy measures, a formulation and a solution of fuzzy decision-making problems in which fuzziness is measured by fuzzy measures. In the problems, a fuzzy expectation is adopted instead of a probability expectation to evaluate the loss associated with a decision maker's action. The concept of a fuzzy strategy is also introduced in place of a Bayes' solution of the stochastic decision theory.
The idea of fuzzy decision-making problem is applied to the problem of what choice one would make when he looks at real-estate advertisements and wishes to buy a residence. The effectiveness of fuzzy measures and a fuzzy strategy are explored through an experimental study using subjects. It is concluded that the experimental results, discussed in comparison with those to be obtained in a stochastic decision-making problem, are satisfactory if we consider the fuzziness of the problem.