Theory and Models of Decision-Making
Instructor: Жељко Рачић, PhD, Full Professor
The goal of the subject is to enable students to make good business decisions. By getting to know the results of normative and behavioral decision theory, they will learn to correctly define the problem, clearly define objectives and their hierarchy, choose the criteria for evaluation of available alternatives and determine the relative importance of particular criteria, define the circumstances in which they take the decision and measure uncertainty, and then with the support of formal methods make rational choice and finally analyze the results of business decisions. They will learn how to make decisions in a group, what are the advantages and disadvantages of consensus and certain voting rules, as well as socio-psychological factors that influence the effectiveness of group decision making. Mastering the basic results of game theory and behavioral theory of negotiation will help them to successfully resolve conflicting business situations. Finally, students will become familiar with the morally contentious issues in business and international business.
| Code : | О17КТМО |
|---|---|
| Status: | C |
| Semestar: | 8th |
| Number of classes per week: | 4+2 |
| ЕECTS: | 6 |
| Teachers: | |
| Prerequisites: | |
| Learning Outcomes (gained knowledge): | It includes the acquisition of knowledge in the field of business decision-making and for that purpose the necessary knowledge of formal decision-making models, methods, techniques, rules and skills are analyzed and acquired - all in order to make appropriate business decisions and achieve defined objective. |
| Subject Contents: | The process of decision making; Decision-maker and his preferences; The model of decision making; The methods of choice in conditions; Decision making under risk; Decision making under risk - the application of the concept of utility; Additional information and its price; Sequentially, the choice between complex alternatives (multiple criteria decision making); Game theory; Group decision making; Unlimited and limited rationality; The group as a decision-maker; Negotiation. |
| Teaching Methods and Learning Activities: | A work method will be adapted to the topics addressed. Results of the normative decision theory will be addressed within the classical lectures and exercises, while the students will actively participate in classes in the field of behavioral theory. Instead of traditional lectures and exercises, the classes are organized as a unique process and with the full participation of students: through their individual and group presentations, seminar papers, as well as through the analysis of cases where students are in the role of different participants in decision-making. |
| Literature: | Pavličić, D. (2004). Decision Theory. Belgrade: Centre for Publishing (CID); Thompson, L. (2005). The Mind and Heart of the Negotiator, third ed. New Jersey: Pearson Prentice Hall, Upper Saddle River. |
| Types of Assessment for the subject: | Colloquium I (0-20 points); Colloquium II (0-20 points); Final exam (0-50 points); Attendance (2point); Class activities (seminar papers, discussions, case studies) (0-8 points) |
| Special Remarks for the subject: |