This course gives an introduction into the decision science relevant to managers, in order to provide an understanding of individual and group behavior in organizational contexts and the (un)predictability and complexity of human behavior in managerial contexts. By exploring applications of game theory and psychology, students will scrutinize both rational and non-rational aspects of decision-making in organizations and markets. The course contrasts psychological theories and game-theoretical predictions with empirical evidence, enhancing understanding and skills to promote effective managerial decision making and intelligent organizational design. You will need to be comfortable with logical thinking and rigorous arguments. Relatively little specific math is required; but you should be familiar with basic probability theory (for example, you should know what a conditional probability is), and some very light calculus would be helpful.

This course will involve understanding the basics of how (managerial) decisions are made, both from a game-theoretical, rational standpoint, and from a behavioral point of view. We will dive into the various elements that influence how individuals and groups make decisions, considering aspects such as risk, decision framing, cognitive biases, emotions,  social perceptions, group interactions, and fairness. We will also explore decision-making in a strategic context, where optimal actions depend on the actions taken by others, and vice versa, as in market interactions or auctions. A crucial part of our exploration will involve learning how to make better decisions, especially in organizational and business settings.

Full attendance is expected for all lectures and experiments. Students are allowed to miss a maximum of 20%. If you cannot attend a lecture due to exceptional/unforeseeable circumstances, please contact the lecturer.

The course employs a variety of learning methods including:

1. Lectures to introduce theories, models, and key concepts.
2. Class Discussions to engage with peers and instructors, challenge assumptions, and reinforce understanding.
3. Simulation Exercises & Experiments to apply theoretical concepts in practical scenarios
4. Self-paced Quizzes to support consolidation of the introduced materials

Class evaluation consists of 3 parts:

1. Participation (10%)         
2. Group assignment (40%)   
3. Quizzes & Exam (50%)   

No pre-requisites

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