88-424 Decision Theory and Rational Choice

9 units, Carnegie Mellon University

Introduction to the concept of rational choice and its relevance benefits and limitations as a tool to analyze different decision problems. Judgment and analysis of decisions by presenting a contrast between the rational choice model from economics and many documented biases and mistakes that can depart from the aforementioned rational model. Topics include rational preferences and optimal choice, judgment and choice biases, mistakes in analyzing statistical data, and basic theories of decisionmaking under risk and uncertainty.

Prerequisites: 21-120 or 21-112

Courseweave needs JavaScript to show sections, workloads and planning tools.