Academic year/semester: 2025/26/2

ECTS Credits: 4

Available for: All OU students

Lecture hours: 0
Seminarium:0
Practice: 2
Laboratory: 0
Consultation: 0

Prerequisites: -

Course Leader: Dr. Viktor Nagy

Faculty: Keleti Károly Faculty of Business and Management, 1084 Budapest, Tavaszmező utca 17.

Course Description:
Upon completion of this course, students should understand the main concepts and be able to recognize basic biases and distortions in the process of
human decision making and know the fundamentals of decision theory. Grade in this course are calculated numerically based on total points of the two tests although the instructor may raise or decrease it by one grade based on the active/inactive participation in classes or the level of the homework.

Test 1: Theoretical knowledge based on the materials discussed and uploaded to the course in Moodle. A maximum of 50 points can be earned.
Test 1 takes place on 21st October 2024.

Test 2 Part 1: Doctus Knowledge Based System – Rule-based reasoning. Each students will be given a rule based reasoning task to solve in Doctus. The file (.dkb) has to be uploaded in Moodle. A maximum of 15 points can be collected.
Test 2 Part 2: Doctus Knowledge Based System – Case-based reasoning. A graph is given to students and the interpretation is needed. One may upload a .docx or a .pdf file, which contains the interpretation. A maximum of 10 points can be collected.
Test 2 (both parts) takes place on 2nd December 2024.

Test1 and Test2 matter in 50%-50%.

Make-up exam: should a student accumulate 50 or less percentages as a total, an additional chance is given to him/her to meet the requirements. It contains all the topic discussed during the whole semester and takes place on 9th December 2024.

Students may get homework, which should be handed in until the next lesson or presented in some minutes. If student does not show up or there is no homework prepared, the total performance decreases by 5 percent per homework at the end of the semester before the final grading.

Grading (percent):
5 (excellent): 87 – 100
4 (good): 75 – 86
3 (satisfactory): 63 – 74
2 (pass): 51 – 62
1 (fail): 50 or less

Competences:
Grade in this course are calculated numerically based on total points of the two tests although the instructor may raise or decrease it by one grade based on the active/inactive participation in classes or the level of the homework.

Topics:
1. Normative and descriptive decision theory
2. Rational Choice
3. Mathematical Background. Games: Prisoner’s Dilemma, Battle of the Sexes, Leader, Game of Chicken, The Tragedy of the Commons, Rendezvous problem
4. Judgement under Uncertainty: Heuristics and Biases
5. Prospect Theory
6. Creativity and Psychology
7. Test 1
8. Decision Support Systems (DSS), The role of the human decision maker in DSS
9. Rule-based reasoning (deduction) – Doctus Knowledge Based System
10. Rule-based reasoning (deduction) – Doctus Knowledge Based System
11. Case-based reasoning (induction) – Doctus Knowledge Based System
12. Case-based reasoning (induction) – Doctus Knowledge Based System
13. Test 2
14. Make-up exams

Assessment: Students are required to attend all classes. In person attendance needed during the semester. (In case of online education, we use Ms Teams. The precondition of practical class attendance is that students have an operating microphone and camera. The camera has to be turned on by default, if otherwise instructed by the lecturer.) Should a student accumulate 5 absences (excused and/or unexcused) in the semester class, he/she will not receive academic credits. Students are required to pass two tests. Students may get homework.

Exam Types:

Written Exam

Test Exam

Compulsory bibliography: This course does not require any textbooks. Students are provided with access to relevant articles and online materials as required.

Recommended bibliography: -

Additional bibliography: Simon, Herbert A. (1959): Theories of Decision-Making in Economics and Behavioral Science. In.: The American Economic Review, Vol. 49, No. 3 Tversky, Amos – Kahneman Daniel (1974): Judgement under Uncertanty: Heuristics and Biases. Science, New Series, Vol. 185, No.4157 March, James G. (1994): A Primer on Decision Making: How Decisions Happen. New York, NY: The Free Press Schwartz, Barry (2004): The Paradox of Choice. Why more is less. Harper & Collins, New York, USA Gladwell, Malcolm (2005): Blink: The Power of Thinking Without Thinking. Little, Brown and Company, New York Crainer, Stuart (1999): The 75 Greatest Management Decisions Ever Made: and the 21 of the Worst. Amcaom Publishing Hastie, Reid – Dawes, Robyn M. (2010): Rational Choice in an Uncertain World: The Psychology of Judgment and Decision Making. Sage Publications 2nd ed. Laux, Helmut (2007): Entscheidungstheorie. Springer-Verlag, Berlin Heidelberg, 7. Auflage

Additional Information: Grade in this course are calculated numerically based on total points of the two tests although the instructor may raise or decrease it by one grade based on the active/inactive participation in classes or the level of the homework. Test 1: Theoretical knowledge based on the materials discussed and uploaded to the course in Moodle. A maximum of 50 points can be earned. Test 1 takes place on 21st October 2024. Test 2 Part 1: Doctus Knowledge Based System – Rule-based reasoning. Each students will be given a rule based reasoning task to solve in Doctus. The file (.dkb) has to be uploaded in Moodle. A maximum of 15 points can be collected. Test 2 Part 2: Doctus Knowledge Based System – Case-based reasoning. A graph is given to students and the interpretation is needed. One may upload a .docx or a .pdf file, which contains the interpretation. A maximum of 10 points can be collected. Test 2 (both parts) takes place on 2nd December 2024. Test1 and Test2 matter in 50%-50%. Make-up exam: should a student accumulate 50 or less percentages as a total, an additional chance is given to him/her to meet the requirements. It contains all the topic discussed during the whole semester and takes place on 9th December 2024. Students may get homework, which should be handed in until the next lesson or presented in some minutes. If student does not show up or there is no homework prepared, the total performance decreases by 5 percent per homework at the end of the semester before the final grading. Grading (percent): 5 (excellent): 87 – 100 4 (good): 75 – 86 3 (satisfactory): 63 – 74 2 (pass): 51 – 62 1 (fail): 50 or less