METHODS AND MODELS FOR ECONOMICS DECISIONS
- Overview
- Assessment methods
- Learning objectives
- Contents
- Full programme
- Delivery method
- Teaching methods
- Contacts/Info
For effective participation in the course, a basic knowledge of general mathematics is strongly recommended, with particular focus on linear algebra (matrices and linear systems) and mathematical analysis (functions, derivatives, and both constrained and unconstrained optimization).
The assessment methods include a written (theoretical) exam with open-ended questions aimed at evaluating the understanding of fundamental concepts related to quantitative methods, decision models, and game theory. The evaluation also involves exercises on the formulation and analysis of mathematical models, as well as Python programming tasks for implementing decision models, solving optimization problems, constructing decision trees, and simulating strategic games. Additionally, quizzes are administered throughout the course to monitor continuous learning and provide timely feedback.
The course aims to provide a solid theoretical foundation in the main quantitative methods used to support economic decision-making, in contexts characterized by both certainty and uncertainty. At the same time, it seeks to develop practical skills in the use of the Python programming language for modeling and computational problem-solving. The program includes an introduction to optimization models and decision-making methods under risk and uncertainty, with particular emphasis on game theory tools for analyzing strategic interactions.
Introduction to fundamental concepts such as the definition of decision problems and the classification of decision models (certainty, uncertainty, risk; individual decisions vs. strategic interactions). Translation of real-world problems into mathematical models. Analysis of economic choice models, with particular focus on consumer theory and firm theory (cost minimization, profit maximization, production, and returns to scale). Study of decision-making under uncertainty and risk, including decision trees and methods for evaluating alternatives in such contexts. In-depth exploration of game theory and strategic interactions, focusing on two-player games and non-cooperative games, pure and mixed strategies, Nash equilibrium (definition, examples, and applications), as well as multiplayer games, repeated games, evolutionary games, and Bayesian games. Practical applications and software development in Python for implementing models, including writing functions, solving numerical problems, and graphical representation, with special attention to solving evolutionary, repeated, and sequential games. Finally, critical evaluation and comparison of the proposed models.
1. Introduction to Decision Models.
2. Mathematical Foundations for Economic Decision-Making.
3. Choice Models in Economics.
4. Decision-Making Under Uncertainty and Risk.
5. Static Games.
6. Sequential Games.
7. Bayesian Games.
8. Evolutionary Games.
9. Dynamic Games.
10. Implementation in Python of Algorithms for Simulation and Solution of Games and Decision Problems.
11. Critical Evaluation of Models and Results.
Lectures focused on the theoretical explanation of fundamental concepts related to quantitative methods, decision models, and game theory, accompanied by practical examples to facilitate the understanding of mathematical models and their economic applications. Practical exercises held in the classroom, utilizing Python to implement decision models, solve optimization problems, construct decision trees, and simulate strategic games. Group projects aimed at developing decision models in Python applied to real economic and management problems. Availability of digital teaching materials, including slides, notes, Python tutorials, and sample scripts, accessible through online platforms (Moodle, Teams, etc.), complemented by video lectures and webinars for specific thematic deepening.
Recommended Books.
1. Game Theory, Robert Gibbons, Il Mulino, 2005.
2. Python for Economic and Social Sciences: Coding in Preparation for Data Science, Jianyi Lin, Davide Radi, and Francesco Tornieri, Giappichelli, 2025.
Professors
Borrowers
-
Degree course in: Economics and management of innovation and sustainability part-time mode
-
Degree course in: Economics and management of innovation and sustainability
