Managerial Decision Making: Course Outline MPM-708

How are decisions actually made and how do these processes differ from the best or optimal methods for decision making? This course will contrast normative and descriptive theories of reasoning, judgment, and decision making. We will explore judgments of risk and uncertainty, including research on calibration, hypothesis testing, and heuristics and biases. An analysis of decision making will include a comparison of expected utility theory with the psychological model Prospect Theory. Other topics include preference reversals, affect and decision making, self-control, game theory, and moral decisions.