Introduction to Decision Theory

Code 582PP
Credits 6

Learning outcomes

The course is meant to introduce the student to the basic theoretical apparatus of Decision Theory by providing the main concepts and techniques as to choices under uncertainty, representations of games and equilibrium concepts, individual and group/social rationality, cooperative behaviour, efficiency, equity, power. The program covers the following main topics: individual decisions in case of risk and ignorance, noncooperative games (extensive and normal forms), Bargaining, Cooperative games (in coalitional form). The course intends to provide a theoretical framework to interpret many economic and social phenomena stemming out of individual and/or group strategic interaction.
The course is tailored for a wide public of students both in economics and in the social sciences; the mathematical tools are kept at the very basic level, but some knowledge of probability theory and of the methods and concepts introduced in a basic course in Microeconomics are highly advised.