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Introduction to decision analysis - goals, scope and challenges; models and decision models.
Decision problem structure - need, goals, alternatives.
Decision problem structure - attributes, uncertainty; structure of a decision making process; (bounded) rationality.
Decision problems with multiple criteria; dominance and efficiency, lexicographic preferences, value function.
Decision problems with uncertainty - decision tables, maximin/maximax/Savage/Laplace/Hurwicz decision making rules.
Decision problems with risk - risk aversion, (first and second order) stochastic dominance utility function.
Measuring the risk averesion
Sequential decision problems; decision trees .
Expected value of perfect information.
Case study - decision trees and expected value of perfect information.
Hyperbolic discounting and time inconsistency of decisions.
Group decision making - properties of choice making methods.
Group decision making - social choice rules.
Behavioural decision analysis - prospect theory.
Money pumps, Dutch books and arbitrage.
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