The course introduces students to optimization models and methods used for the solution of decision problems arising in economics.
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.
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.
Lectures, analysis of case studies, computer lab exercises and lessons using application software.
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
Ricevimento: I semester: contact by e-mail II semester: Wednesday h.14.30-15.30
ELENA TANFANI (President)
DANIELA AMBROSINO
ANNA FRANCA SCIOMACHEN
Sem: II
28 february 2018 - 1 june 2018
DECISION MAKING METHODS FOR ECONOMICS
Written test in English and a practical test in the computer room or the execution of a project work (individual or by groups).
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
Recommended Prerequisites:
General Mathematics
Expected learning outcomes
Knowledge and understanding Students must acquire adequate knowledge and effective understanding and use of methodological tools to formalize individual decisions in the economic and social sphere. Ability to Apply Knowledge and Understanding Students must be able to apply acquired knowledge and understand and solve problems and related patterns of social and economic interaction in situations of application interest. Autonomy of judgment Students must be able to use both conceptual and operational knowledge acquired through autonomous assessment skills and skills in different application contexts. Communication Skills Students must acquire the technical language of the discipline to communicate clearly and without ambiguity with specialists and non-specialists. Learning Skills Students must develop adequate learning skills that will allow them to continue to deepen the core issues of discipline autonomously, especially in the contexts in which they will be operating.
Attendance Not compulsory
