Bachelor 2020/2021

Methods of Decision-Making

Category 'Best Course for Broadening Horizons and Diversity of Knowledge and Skills'

Category 'Best Course for New Knowledge and Skills'

Type: Compulsory course (Public Administration)

Area of studies: Public Administration

Delivered by: Department of Mathematics

Where: Faculty of Social Sciences

When: 3 year, 1, 2 module

Mode of studies: distance learning

Instructors: Fuad T. Aleskerov, Alexey L. Myachin

Language: English

ECTS credits: 5

Contact hours: 48

Course Syllabus

Abstract

The course includes main notions and stages of decision making, relevant mathematical models and methods, namely, linear and nonlinear programming, multi-objective and dynamical optimization methods, game considerations and their use in applied problems. Дистанционное обучение производится на платформах MS Teams, Webinar и Zoom. Ссылка на конкретные занятия заранее высылается преподавателем по почте.

Learning Objectives

• To familiarize students with basic concepts, models and methods of decision making.

Expected Learning Outcomes

• Know principles of mathematical models construction in decision analysis
• Be able to choose rational options in practical decision-making problems
• Have skills in analysis of game-theoretic models

Course Contents

• Introduction
  Participants and stages of decision making (DM). Mathematical models and methods in DM.
• Multicriterial Decision Making (MCDM)
  Vectorial criteria, decision and criterial spaces, multicriterial preferences. Pareto optimality. Linear convolution method, threshold aggregation. An evaluation of the efficiency of administrative reform in Russia.
• Network analysis
  Centrality in networks. Other characteristics of networks. Different applications – international conflicts, migration, trade, etc.
• Power distribution in international organizations
  The concept of power. Shapley-Shubik and Banzhaf indices. Other power indices. Power indices based on the agents’ preferences to coalesce. Power distribution in IMF, Russian commercial banks.
• Double-sided matchings
  Preferences of agents. Gale-Shapley algorithm. Distribution of works among workers.
• Fair division
  Criteria for fair division. Adjusted winner procedure. Other procedures. An allocation of disputable zones in Arctic.
• Game-theoretic models
  Two-person games. Dominant strategies. The concept of equilibrium. Nash equilibria in pure strategies. Mixed strategies. Nash equilibria in mixed strategies. Focal equilibria. Several applications.

Assessment Elements

• homework
• test 1
• test 2
• final exam

Interim Assessment

• Interim assessment (2 module)
  0.5 * final exam + 0.1 * homework + 0.2 * test 1 + 0.2 * test 2

Bibliography

Recommended Core Bibliography

• Aleskerov F., Bouyssou D., Monjardet B. ‘Utility Maximization, Choice and Preference’, Springer Verlag, Berlin, 2007

Recommended Additional Bibliography

• Osborne, M. J. (2009). An introduction to game theory / Martin J. Osborne. New York [u.a.]: Oxford Univ. Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edswao&AN=edswao.324093616