EM725 TOPICS IN EM: BEHAVIORAL DECISION ANALYSIS
| Course Code: | 8660725 |
| METU Credit (Theoretical-Laboratory hours/week): | 3 (3.00 - 0.00) |
| ECTS Credit: | 8.0 |
| Department: | Engineering Management |
| Language of Instruction: | English |
| Level of Study: | Graduate |
| Course Coordinator: | Prof.Dr. MUSTAFA MURAT KÖKSALAN |
| Offered Semester: | Fall and Spring Semesters. |
Course Objectives
Upon successful completion of this course, the students are expected to:
- Learn to structure decision problems under uncertainty.
- Learn to elicit utilities and to find utility-maximizing solutions.
- Learn about human biases and their effects in decision making.
Course Content
Decision making under uncertainty; decision rules; decision trees; maximizing expected value; utility theory. Behavioral aspects of decision making; factors affecting decisions; context, framing, endowment, anchoring effects. Prosoect theory; regret theory.
Course Learning Outcomes
The students will be able to aid in decision making situations under uncertainty, manipulating probabilities and taking attitudes towards risk into account. They will understand various systematic biases in human judgment and the conditions leading to these biases.