Descriptive Decision Theory

Short Module
0LSUA0 - Analysis and Control of Risk
0LSUC0 - Decision Theory

2024-2025 Q2

Eindhoven University of Technology

Dr. Carlos Zednik

CYBERSECURITY UPDATE: Because of the ongoing technical issues at TU/e, the schedule and deadlines of this short module have been shifted by one week. The dates below reflect this move, and are marked in RED.


This page is a means of distributing lecture slides, reading assignments, and other information related to the short module on descriptive decision theory. Further information, including examination information, is contained in the course Canvas pages for the 0LSUA0 and 0LSUC0 long modules, as well as in the corresponding study guides.

All materials distributed through this website are protected by a username and password that are distributed during the first short module lecture, and as an announcement on Canvas. Note that the course instructor will not respond to direct email requests to distribute the password individually.


Description

In the short module on descriptive decision theory (DDT), we look at the extent to which psychological processes of judgment and decision-making diverge from normative principles, and on the ways in which heuristics, biases, nudging, and decision-strategies are used, accommodated, and at times even exploited.


Requirements

To complete this short module successfully, students must complete one assignment (due on January 20th, 23:59, via the Canvas pages). This assignment will pose questions similar in structure to those on the exam, but may require some online research.

In addition to the assignment, a section of the final exam (on January 27th) for both 0LSUA0 and 0LSUC0 will be dedicated to this short module. A practice exam which is closely representative of the structure and content of the DDT final exam section has been made available here, with answers here.


Schedule

Monday, 16.12.2024
10:45-12:30
Auditorium 16Bounded Rationality
Peterson, M. (2009). An Introduction to Decision Theory (Chapter 14), Cambridge University Press.
Thursday, 19.12.2024
13:30-15:15
MS TeamsHeuristics, Biases, and Nudging
Tversky, A. & Kahneman, D. (1974). Judgment under Uncertainty: Heuristics and Biases. Science 185(4157): 1124-1131.
Todd, P. & Gigerenzer, G. (2003). Bounding Rationality to the World. Journal of Economic Psychology 24: 143-165.
Monday, 06.01.2025
10:45-12:30
Neuron 0.266Prospect Theory
Kahneman, D. & Tversky, A. (1984). Choices, Values, and Frames. American Psychologist 39(4), 341–350.
Thursday, 09.01.2025
13:30-15:15
Metaforum 08Decision Strategies
Bettman et al. (1998). Constructive Consumer Choice Processes (pages 187-192). Journal of Consumer Research 25(3): 187-217.
Thursday, 23.01.2025
13:30-15:15
Neuron -1.350Exam Review