# DECISION MAKING METHODS FOR ECONOMICS

iten
Code
80675
2017/2018
CREDITS
6 credits during the 3nd year of 8699 Economics (L-33) GENOVA
SCIENTIFIC DISCIPLINARY SECTOR
MAT/09
LANGUAGE
Italian
TEACHING LOCATION
GENOVA (Economics)
semester
2° Semester
Prerequisites
Prerequisites
You can take the exam for this unit if you passed the following exam(s):
• Economics 8699 (coorte 2015/2016)
• CALCULUS FOR UNDERGRADUATED STUDENTS. 41138
Teaching materials

## OVERVIEW

The course introduces students to optimization models and methods used for the solution of decision problems arising in economics.

## AIMS AND CONTENT

LEARNING OUTCOMES

The course aims to provide students with adequate knowledge of the main quantitative methods to support to decision-making in the field of economics and to be able to use, with some mastery, the reference software environments. From a methodological point of view, specific situations of competitive, co-operative, gaming-related interaction situations, and convex programming algorithms will be illustrated to optimize certain objective functions such as maximizing profit and utility and minimizing the costs.

AIMS AND LEARNING OUTCOMES

Objective of the course is the presentation of both methodological aspects and applications in order to provide students with knowledge of the resolution methods and specific software to solve them. At the end of the course students should have acquired skills that will enable them to address the real problems, developing original resolution methods and using the required software environments to solve them.

TEACHING METHODS

Lectures, analysis of case studies, computer lab exercises and lessons using application software.

SYLLABUS/CONTENT

For each part of the course, the theoretical discussion, intended to provide basic content, will be complemented by the practical/laboratory part in the computer classroom through the use of appropriate software tools. Part I: - Introduction to decision-making and problem solving: from real problems to mathematical models. - Classification of decision models. - Functional study in multiple variables: maximum and minimum unbounded. - Constrained optimization, Lagrangian functions, and economical interpretation of Lagrange multipliers.

Part II: - Introduction to non-linear, convex, linear, and mathematical mathematical programming models. - Consumer choice models and maximization of utility. - Business choice models: minimizing costs and maximizing profit. - Demand and Supply Models. - Models for selecting investment under risk. Part III: - Decision trees and decisions theory in uncertainty and risk. - Optimizing the expected economic value of the decisions. - Utility theory. - Introduction to Game Theory. - Studying and modeling situations of interaction between subjects, competitive and cooperative, pure and mixed strategies. Game theory and optimization.

The text books and other additional handouts for foreign students will be communicated at the beginning of the course and published on Aulaweb

## TEACHERS AND EXAM BOARD

Office hours: I semester: contact by e-mail II semester: Wednesday h.14.30-15.30

Exam Board

ELENA TANFANI (President)

DANIELA AMBROSINO

ANNA FRANCA SCIOMACHEN

## LESSONS

TEACHING METHODS

Lectures, analysis of case studies, computer lab exercises and lessons using application software.

LESSONS START

Sem: II

28 february 2018 - 1 june 2018

## EXAMS

EXAM DESCRIPTION

Written test in English and a practical test in the computer room or the execution of a project work (individual or by groups).

ASSESSMENT METHODS

 Method of assessment The written test is intended to assess the level of knowledge and learning of the topics discussed in the lesson. Critical content processing and applying acquired knowledge are evaluated through practical testing or project work
Repetition of exam:
If the student does not pass the exam or returns less than his / her expectations, he / she may repeat the exam at most three times for each session. That is, the "exam jump" is only foreseen in the exam session with 4 exam
s.

Exam schedule

Date Time Location Type Notes
05/06/2018 12:00 GENOVA Scritto
26/06/2018 12:00 GENOVA Scritto
10/07/2018 12:00 GENOVA Scritto
27/07/2018 12:00 GENOVA Scritto
04/09/2018 12:00 GENOVA Scritto