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Regular version of the site
Master 2021/2022

Decision Analysis

Type: Compulsory course (Business Analytics and Big Data Systems)
Area of studies: Business Informatics
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

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

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

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 in business
    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

Assessment Elements

  • non-blocking Homework
    Several small homeworks given by the lecturer.
  • non-blocking 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)
  • non-blocking 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

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

Bibliography

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.

Recommended Additional Bibliography

  • George Wu, & Kathleen L. McGinn. (2017). Decision Analysis. HBP Education Case Study Collection.
  • Gregory S. Parnell, Terry Bresnick, M., Steven N. Tani, P., & Eric R. Johnson, P. (2012). Handbook of Decision Analysis. Wiley.
  • Kenneth D. Lawrence, & Gary Kleinman. (2010). Applications in Multi-criteria Decision Making, Data Envelopment Analysis, and Finance: Vol. 1st ed. Emerald Group Publishing Limited.
  • Sherman, E. H. (2015). A Manager’s Guide to Financial Analysis : Powerful Tools for Analyzing the Numbers and Making the Best Decisions for Your Business: Vol. Sixth edition. AMA Self-Study.
  • Ward Edwards, Ralph F. Miles Jr, & Detlof von Winterfeldt. (2007). Advances in Decision Analysis : From Foundations to Applications. Cambridge University Press.
  • Y. Ilker Topcu, Özay Özaydın, Özgür Kabak, & Şule Önsel Ekici. (2021). Multiple Criteria Decision Making : Beyond the Information Age (Vol. 1st ed. 2021). Springer.
  • Алескеров Ф.Т., Хабина Э.Л., Шварц Д.А. - Бинарные отношения, графы и коллективные решения - Издательство "Физматлит" - 2012 - 344с. - ISBN: 978-5-9221-1363-2 - Текст электронный // ЭБС ЛАНЬ - URL: https://e.lanbook.com/book/59762