4509216: Decision Theory

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Semester:SS 18
Scheduled in semester:4
Semester Hours per Week / Contact Hours:30.0 L / 22.5 h
Self-directed study time:67.5 h

Module coordination/Lecturers


Bachelor's degree programme in Business Administration (01.09.2012)


  • Expected utility theory
  • Mean-variance theory
  • Prospect theory.
  • Asymmetric information
  • Market efficiency
  • Behavioral biases


    • know the most prominent decision theories.
    • understand how rational solutions may be achieved by using classical decision models.
    • know different levels of market efficiency and their implications
    • understand how information is processed on financial markets
    • solve decision problems by using DT models and methods. They find the strategic aspect of a problem and transform it into a simplified problem.
    • analyze decision situations.
    • evaluate Investments with EUT, MV and PT,. explain and interpret the assumptions of these methods.
    • know methods in decision theory.
    • use methods and models on unknown decision situations. Calculate optimal solutions and equilibria.
    • compare different methods for measuring and controlling risk and uncertainty in decision processes.
    • evaluate decision methods in mini cases and find appropriate models for solving typical problems.
    • understand and critically discuss the arguments of fellow students.
    • listen carefully, read and repeat, practice until they understand the logic and mathematics behind models.
    • work together and motivate other students who tend to give up as a reaction to the difficulty of mathematical problems.

Lectures Method

Lecture with interactive elements, group work, presentation


  • Thorsten Hens & Marc Oliver /Rieger: Financial Economics, 2010, Springer (supplementary)

Exam Modalities

  • written examination (70%)
  • presentation (30%)


20.02.201810:00 - 11:30S2
27.02.201810:00 - 11:30S2
06.03.201810:00 - 11:30S2
13.03.201810:00 - 11:30S2
20.03.201810:00 - 11:30S2
27.03.201810:00 - 11:30S2
10.04.201810:00 - 11:30S2
17.04.201810:00 - 11:30S2
24.04.201810:00 - 11:30S2
08.05.201810:00 - 11:30S2
15.05.201810:00 - 11:30S2
22.05.201810:00 - 11:30S2
29.05.201810:00 - 11:30S2


  • PWW-BA-12_Decision Theory - SE1 (SS 18, in Bewertung)