6 Sections
35 Lessons
20 Hours
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1. Decision-making process
7
1.1
Applicable criteria in decision making
1.2
Modification of probabilities that implies a change of decision
1.3
Optimal choice according to the criterion of maximizing expected value - Tree representation
1.4
Information in a poker game
1.5
Optimal choice according to the criterion of maximizing expected value – Matrix representation
1.6
Calculating the value of an unknown payoff so that one alternative is preferred over another
1.7
Module Exam
2. The value of perfect information
7
2.1
The value of perfect information
2.2
Calculation of the expected monetary value with perfect information (EMV)
2.3
Value of partial perfect information
2.4
Value of perfect information with more than one variable
2.5
Calculating the value of perfect information (VIP)
2.6
Calculation of the value of perfect information (VIP) in matrix representation
2.7
Module Exam
3. The value of imperfect information
7
3.1
The value of perfect information
3.2
The paradox of the two envelopes
3.3
The value of terrible, imperfect information
3.4
The Monty Hall Paradox
3.5
Conditional probabilities
3.6
Let's not confuse conditional probabilities
3.7
Module Exam
4. Positions towards decision-making
7
4.1
Approaches to risk in decision-making
4.2
A decision-maker's stance on risk
4.3
Calculating the certain equivalent of a lottery
4.4
Influence of wealth on risk attitude
4.5
Calculating the risk premium of a lottery
4.6
Risk and return
4.7
Module Exam
5. Behaviors that contradict the theory
7
5.1
Behaviors that contradict the theory
5.2
Sunk costs
5.3
Anchoring effect
5.4
Paradoxes in economic decision-making
5.5
Decoy effect
5.6
Endowment effect
5.7
Module Exam
Final Exam
0
Learn to make sound economic decisions
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