Please note! Course description is confirmed for two academic years, which means that in general, e.g. Learning outcomes, assessment methods and key content stays unchanged. However, via course syllabus, it is possible to specify or change the course execution in each realization of the course, such as how the contact sessions are organized, assessment methods weighted or materials used.

LEARNING OUTCOMES

To familiarize the students with the central topics of decision theory and behavioral decision making.

Credits: 6

Schedule: 19.04.2021 - 31.05.2021

Teacher in charge (valid 01.08.2020-31.07.2022): Eeva Vilkkumaa

Teacher in charge (applies in this implementation): Eeva Vilkkumaa

Contact information for the course (valid 18.03.2021-21.12.2112):

Prof. Eeva Vilkkumaa, eeva.vilkkumaa@aalto.fi.

Office hours: by appointment.


CEFR level (applies in this implementation):

Language of instruction and studies (valid 01.08.2020-31.07.2022):

Teaching language: English

Languages of study attainment: English

CONTENT, ASSESSMENT AND WORKLOAD

Content
  • Valid 01.08.2020-31.07.2022:

    Rational decision making under uncertainty, quantification of uncertainty, biases, Bayesian decision theory, foundations of utility theory, behavioral decision theory: criticism of rationality axioms, prospect theory.

  • Applies in this implementation:

    This course focuses on the theoretical foundations of decision analytic methods, how human behaviour deviates from these foundations, and how decision processes can be designed to take these deviations into account. This year's content covers expected utility theory, heuristics and biases, prospect theory, multiattribute value/utility theory, bounded rationality, emotions in decision making, and facilitated modeling.

Assessment Methods and Criteria
  • Valid 01.08.2020-31.07.2022:

    Spring 2021 & 2022: Quizzes 40%, assignments 60%

  • Applies in this implementation:

    Final points, which consist of quiz (40%) and assignment points (60%), determine the final grade:  >50p ->1; >60p -> 2; >70p -> 3; >80p -> 4; >90p -> 5. These bounds maybe relaxed during final grading. 

    There are nine quizzes and two assignments with deadlines during the course. Each quiz contains five multiple choice questions based on pre-readings. Each assignment consists of ca. 5 problems, some of which may require the use of spreadsheets or other mathematical software to solve.



Workload
  • Valid 01.08.2020-31.07.2022:

    Contact teaching 22 h, Independent work 132 h, Exam 3 h

  • Applies in this implementation:

    In 2021, workload will be as follows: contact teaching 30 h, independent work 127 h. 

    Contact teaching includes lectures, Q&A sessions on the assignments, and assignment feedback sessions.

    Individual work includes class preparation (24 h), quizzes (6 h), and assignments (97 h). 


DETAILS

Study Material
  • Valid 01.08.2020-31.07.2022:

    Material handed out in class, mandatory readings

Prerequisites
  • Valid 01.08.2020-31.07.2022:

    Business Analytics 2 or equivalent skills

Registration for Courses
  • Valid 01.08.2020-31.07.2022:

    Via WebOodi.

  • Applies in this implementation:

    The course will be implemented fully online.



SDG: Sustainable Development Goals

    8 Decent Work and Economic Growth

    9 Industry, Innovation and Infrastructure

FURTHER INFORMATION

Details on the schedule
  • Applies in this implementation:

    There are two 2-hour lectures per week. Moreover, Q&A sessions on the assignments will be arranged at 14-15 on Wednesdays 21.4., 28.4., and 5.5., and on Mondays 10.5., 17.5., and 24.5.