Doctoral Program in Economics and Management
Scuola Superiore Sant'Anna, Pisa

Intro to Decision Theory, December 2008
Prof. Salvatore Modica

Syllabus:

• Representation of Preference Relations
• Expected Utility: deFinetti, Von Neumann Morgenstern, Savage
• Elicitation of Preferences
• Risk Aversion
• Gains and Losses: Rank Dependent Utility and Prospect Theory
• Ambiguity: Max-min Expected Utility and Variational Preferences
• Survey of Special Topics and Applications

Main Reference Texts:

• David Kreps, "Notes on the Theory of Choice", Westview Press 1988
• Peter Wakker, "Prospect Theory", Cambridge University Press, 2009 forthcoming
• Fabio Maccheroni, Behavioral models in economics and finance, 2006 (mimeo)