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Regular version of the site
Master 2021/2022

## Decision Analysis

Type: Compulsory course (Business Analytics and Big Data Systems)
When: 1 year, 1, 2 module
Mode of studies: offline
Open to: students of one campus
Master’s programme: Business Analytics and Big Data Systems
Language: English
ECTS credits: 5

### Course Syllabus

#### Abstract

The course contains the main topics of decision analysis in the deterministic framework widely used in management. The topics include uni- and multicriterial choice models, models of personnel management, models of fair division, network analysis, an analysis of efficiency of firms. It includes as well the models of data analysis used in business and political decisions. All models are widely illustrated by real-life examples.

#### Learning Objectives

• Study of the theoretical foundations of modern models of individual, multi-criteria and collective decision-making in economics and business
• Study of the principles of construction, analysis and evaluation of formalized mathematical models describing real situations
• Knowledge of some basic models of multi-criteria, individual and collective decision-making, matching construction, the assessment of influence in groups and the assessment of the efficiency of companies

#### Expected Learning Outcomes

• ability to identify the criterion type (quantitative or qualitative)
• knowledge and ability to apply different methods for solving multicriteria problems
• ability to apply the algorithm of Gale-Shapley to find a stable matching
• ability to evaluate the impact of group members with assistance of influence indices (Banzaf, Johnston, Shapley-Shubik, Digen-Pakel, alpha-indices)
• ability to evaluate the efficiency of companies taking into account many factors

#### Course Contents

• Uni- and multicriterial choice models
Decision process, its participants and stages. Pareto optimality. Models of multicriterial choice – the threshold model, the method of an ideal point. Exact and interval estimates. Efficiency of bank branches. Cost-efficiency analysis
• Matchings
Preferences of participants. Stable matchings. Personnel management
• Fair division
Division models. Fairness criteria. ‘Adjusted winner’ procedure
• Network analysis
Main concepts of networks. Classic and new centrality indices. Applications – food se-curity, migration, international conflicts, etc.
Data analysis. Clustering. Pattern analysis. Behavior of consumers of large retail firm
• Efficiency of firms
Data Envelopment Analysis (DEA) model. Efficiency frontier. Modified DEA model for heterogeneous sample. Modified DEA method for interval data. Different applications
• Political decisions
What is a political decision? Tragedy of commons. Voting models. Downsian analysis
• Power in groups
Coalitions. Banzhaf power index. Power indices taking into account the preferences of players to coalesce. Power distribution in IMF. Application – Russian banks

#### Assessment Elements

• Homework
Several small homeworks given by the lecturer.
• Project
Students perform group or individual project on one of the proposed topics or a topic proposed by them (with the approval of the teacher)
• Exam
The exam consists of tasks that are equivalent or similar to those that were analyzed at lectures and seminars, as well as given to students in homework. The examination work is performed by the student independently. It is forbidden to use any materials (in printed and electronic form)

#### Interim Assessment

• Interim assessment (2 module)
0.4 * Exam + 0.2 * Homework + 0.4 * Project

#### Recommended Core Bibliography

• Aizerman, M. A. (1985). New Problems in the General Choice Theory. Working Papers.
• Aleskerov, F., Meshcheryakova, N., & Shvydun, S. (2016). Centrality measures in networks based on nodes attributes, long-range interactions and group influence.
• Aleskerov, F., Meshcheryakova, N., Rezyapova, A., & Shvydun, S. (2018). Network analysis of international migration.