F1N5117 Decision Theory 7.5 credits

In many situations we are forced to make decisions without having complete knowledge of the outcomes of our choices. The aim of this course is to provide a foundation for reflection on how rational choices can be made in such situations. We will discuss concepts such as rationality, preferences, goals, uncertainty, and utility. What does it mean to say that a preference, a goal, or a choice is rational? How should decisions be made under uncertainty and risk? What importance does the expected utility of different options have in a decision situation? This course will also serve as an introduction to game theory and social decision theory.

After completed course, the student should be able to outline and analyse arguments and basic issues in

• decision under risk and ignorance,
• collective decision theory,
• the conceptual basis of decision theory,
• formalization of decision problems.

Entry requirements for PhD studies

Entry requirements for PhD studies.

• Peterson, M. ”An Introduction to Decision Theory”, Cambridge University Press.
• Other literature posted on the course website at the latest four weeks before the course starts

If the course is discontinued, students may request to be examined during the following two academic years.

Based on recommendation from KTH’s coordinator for disabilities, the examiner will decide how to adapt an examination for students with documented disability.

The examiner may apply another examination format when re-examining individual students.

Essay and/or oral examination according tu decission by the examinator

John Cantwell

• All members of a group are responsible for the group's work.
• In any assessment, every student shall honestly disclose any help received and sources used.
• In an oral assessment, every student shall be able to present and answer questions about the entire assignment and solution.