Objectives and competences
In this course students:
1. Understand selected decision analysis methods.
2. Gain the ability to apply their theoretical knowledge in business and economic practice, in multi-criteria decision-making and game theory, on the micro and macro level.
3. Differentiate, understand and acquire the multi-criteria and the game theory approaches to the analysis of problems in business and economic decision-making and the advanced knowledge of basic theoretical approaches in the field of business and economic decision-making, using the selected decision analysis methods.
Content (Syllabus outline)
MULTICRITERIA DECISION-MAKING
- Multi-criteria decision-making and optimisation: conflict goals, Pareto- optimal, ideal point, the best compromise solution, compromise programming, applications of compromise programming in economic practice, computer support with na emphasis on Excel
- Ranking the final set of alternatives with respect to multiple criteria: steps of dealing with multi-criteria decision-making problems, reciprocal preferential independence of attributes, additive model, scales, weights, value functions, local and global alternatives' values, methods based on interval and ordinal scales (SWING, SMART, SMARTER), and ratio scale (AHP), together with adequate computer programs with an emphasis on Expert Choice, applications with cases from business and economic practice
GAME THEORY
- Decision theory or games against nature: decisions under uncertainty, decisions under risk, computer support with na emphasis on Excel
- Game theory: two-person zero-sum games with complete and incomplete information (optimal strategies, equilibrium), two-person non-zero-sum games (non-cooperative and co-operative games, equilibrium, bargaining set, bargaining model, Nash’s model, Raiffa-Kalai-Smorodinsky’s model), computer support with an emphasis on Excel
Learning and teaching methods
- lecturing;
- teaching with the case method;
- labor work;
- active group work, discussion
Intended learning outcomes - knowledge and understanding
Development of knowledge and understanding:
Students:
1. Acquire specific and a detailed knowledge in the field of decision analysis, i.e. the selected methods of multi-criteria decision-making and game theory, and to apply them in solving economic and business problems.
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2. Develop the skills to interpret the results, gained by the selected methods multi-criteria decision analysis and game theory.
3. Can demonstrate awareness of ethical issues when making judgments about the criteria’s importance and measuring the alternatives’ values.
2. .
Cognitive/Intellectual skills:
Students:
1. Understand and apply critical analysis and theory development and their usability in solving real professional problems, with minimum guidance.
2. Can select appropriate techniques for problem solving and are able to evaluate the importance and significance of data.
3. Can define the problem.
Intended learning outcomes - transferable/key skills and other attributes
Key/Transferable skills
Students:
1. Further develop skills and expertise in the use of knowledge in a specific working area.
2. Upgrade the ability to apply information technology.
3. Upgrade the ability to work in pairs and groups.
4. Further develop their communication skills in an effective manner to effectively and professionally communicate.
Practical skills:
Students:
1. Are able to act autonomously with defined guidelines and certain level of supervision, to select and use decision methods in solving economic and business problems.
Readings
Obvezni:
1. Čančer, V. (2015). Zapiski predavanj pri predmetu Analiza odločanja. Maribor: Ekonomsko-poslovna fakulteta.
Dodatni:
- Čančer, V. (2009). Gradivo za vaje pri predmetu Analiza odločanja. Maribor: Ekonomsko-poslovna fakulteta.
- Doumpos, M., Figueira, J. R., Greco, S., & Zopounidis, C. (ur.) (2019). New perspectives in Multiple Criteria Decision Making: Innovative Applications and Case Studies. Springer.
- Aliprantis, C. D., & Chakrabarti, S. K. (2000). Games and Decision Making. New York, Oxford: Oxford University Press.
- Aumann, R. J. , & Hart, S. (ur.). (2002) Handbook of Game Theory with Economic Applications. North-Holland.
- Belton, V., & Stewart, T. J. (2002). Multiple Criteria Decision Analysis - An Integrated Approach. Boston, Dordrecht, London: Kluwer Academic Publishers.
- Nutt, P. C., & Wilson, D. C. (ur.). (2010). Handbook of Decision Making. Chichester: John Wiley & Sons Ltd.
- Saaty, T. L.. (2001). Decision Making for Leaders: The Analytic Hierarchy Process for Decisions in a Complex World. Pittsburgh: RWS Publications.
- Zopounidis, C., & Pardalos, P. M. (ur.). (2010) Handbook of Multicriteria Analysis. Heidelberg, Dordrecht, London, New York: Springer-Verlag.
- Podpore na svetovnem spletu
- Aktualni znanstveni in strokovni prispevki
Additional information on implementation and assessment 20% - active participation at lectures, tutorials and labs;
30% - preparation and presentation of seminar work;
50% - written examination
For positive grade, seminar work and written exam must be positive. Positive means at least 56 %, For a positive grade it is necessary to achieve at least 56 % of all possible points.
