Descriptive Decision Theory

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

2022-2023 Q2

Eindhoven University of Technology

Dr. Carlos Zednik

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 0LSUA0 and 0LSUC0, as well as in the corresponding study guides.

All materials distributed through this website are protected by a username and password distributed during the first short module lecture.


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 how the reliance on heuristics, biases, nudging, and decision-strategies can be used to make decisions efficiently and reliably.


To complete this short module successfully, students must complete one assignment (due on January 16th, 2023, via the Canvas pages). This assignment will apply principles from descriptive decision theory to the challenge case students encountered in Q1. If you did not attend the Q1 DURU sequence course, you can select an alternative case.

In addition to the assignment, a section of the final exam (on January 23rd 13:30-16:30) 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.


Monday, 19.12.2022
Aud 11Descriptive Decision Theory
Peterson, M. (2009). An Introduction to Decision Theory (Chapter 14), Cambridge University Press.
Thursday, 22.12.2022
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.
Thursday, 22.12.2022
MS TeamsTutorials 1&2
Monday, 09.01.2023
Aud 11Prospect Theory
Kahneman, D. & Tversky, A. (1984). Choices, Values, and Frames. American Psychologist 39(4), 341–350.
Thursday, 12.01.2023
Aud 11Decision Strategies
Bettman et al. (1998). Constructive Consumer Choice Processes (pages 187-192). Journal of Consumer Research 25(3): 187-217.
Thursday, 13.01.2023
Aud 11Tutorials 3&4