2024
Decision and Negotiation Analysis
Name: Decision and Negotiation Analysis
Code: GES00010L
6 ECTS
Duration: 15 weeks/156 hours
Scientific Area:
Management
Teaching languages: Portuguese
Languages of tutoring support: Portuguese, English
Regime de Frequência: Presencial
Presentation
This unit trains students to able to analyze decision problems in several contexts. The topics covered are Decision Analysis, Game Theory and Negotiation Analysis.
Sustainable Development Goals
Learning Goals
The learning objectives of the curricular unit are the following:
• Understand the different elements of a decision problem.
• Learn how to analyze decision problems under uncertainty, dynamic decision problems and multi objectives decision problems;
• Be able to help other in their decision making problems (as a decision analyst) and be able to justify the recommended actions.
• Learn how to analyze decision problems in the presence of strategic interdependency.
• Be able to analyze negotiation problems and to use this analysis to improve the outcome of the negotiation process.
This curricular unit develops the following competences:
• Capacity to work in teams
• Decision making capacity and ability to solve management problems
• Abstraction capacity, model building and critical thinking.
• Oral and written communication capacity. Being able to transmit and to receive ideas and information.
• Capacity to implement and use management support information and communication technolo
• Understand the different elements of a decision problem.
• Learn how to analyze decision problems under uncertainty, dynamic decision problems and multi objectives decision problems;
• Be able to help other in their decision making problems (as a decision analyst) and be able to justify the recommended actions.
• Learn how to analyze decision problems in the presence of strategic interdependency.
• Be able to analyze negotiation problems and to use this analysis to improve the outcome of the negotiation process.
This curricular unit develops the following competences:
• Capacity to work in teams
• Decision making capacity and ability to solve management problems
• Abstraction capacity, model building and critical thinking.
• Oral and written communication capacity. Being able to transmit and to receive ideas and information.
• Capacity to implement and use management support information and communication technolo
Contents
1. Introduction
2. Individual decision making under uncertainty
2.1. The elements of a decision problem
2.2. Representation of decision problems
2.3. Choice criteria without probabilities
2.4. Expected monetary value criterion
2.5. Expected utility theory
2.6. Methods for preferences extraction
2.7. Analysis of sequential decision problems
2.8. Software for decision analysis (Precision Tree)
3. Individual decision making with multiple objectives
3.1. Objectives and attributes
3.2. Efficient alternatives and tradeoffs among objectives
3.3. Utility function and selection of the best alternative
4. Decisions in the presence of strategic interdependency
4.1. Strategic and extensive form representation of a game
4.2. Static games with complete information
4.3. Dynamic games with complete information
4.4. Applications of game theory to management and economics
5. Negotiation Analysis
5.1. Characteristics of negotiation analysis
5.2. Bilateral negotiation with one issue and several issues
2. Individual decision making under uncertainty
2.1. The elements of a decision problem
2.2. Representation of decision problems
2.3. Choice criteria without probabilities
2.4. Expected monetary value criterion
2.5. Expected utility theory
2.6. Methods for preferences extraction
2.7. Analysis of sequential decision problems
2.8. Software for decision analysis (Precision Tree)
3. Individual decision making with multiple objectives
3.1. Objectives and attributes
3.2. Efficient alternatives and tradeoffs among objectives
3.3. Utility function and selection of the best alternative
4. Decisions in the presence of strategic interdependency
4.1. Strategic and extensive form representation of a game
4.2. Static games with complete information
4.3. Dynamic games with complete information
4.4. Applications of game theory to management and economics
5. Negotiation Analysis
5.1. Characteristics of negotiation analysis
5.2. Bilateral negotiation with one issue and several issues
Teaching Methods
The teaching sessions are theoretical-practical, combining the concepts with their application to concrete cases. The more expository sections are supported by PowerPoint presentations. The sessions include the resolution of practical exercises and case studies, with students actively participating in their resolution or discussion. In addition to the sessions, students are encouraged to solve practical exercises at home on their own, developing a spirit of autonomy. In Moodle, tests are available for students to self-assess and thus identify what they already know and what they still need to improve.
Students carry out practical work in groups where they take on the role of a consultancy firm that has the mission of helping to solve a particular decision problem, having to draw up a report that includes analysing the problem and making recommendations. In this practical work, students must use Precision Tree to represent the decision tree, identify the optimal strategy and a
Students carry out practical work in groups where they take on the role of a consultancy firm that has the mission of helping to solve a particular decision problem, having to draw up a report that includes analysing the problem and making recommendations. In this practical work, students must use Precision Tree to represent the decision tree, identify the optimal strategy and a
Assessment
There are two assessment systems: exams and continuous assessment. In continuous assessment, the final grade gives a weight of 5% to participation, 25% to the practical group project, 30% to the intermediate test grade and 40% to the final exam grade. The grade for group project includes a peer evaluation component. The minimum mark for each of the assessment tests is 7 marks. In the final assessment system, the grade gives 20% weight to the assignment and 80% to the final exam. The final exam covers all the contents of the curricular unit.
Recommended Reading
- Clemen, Robert T. (1996), “Making Hard Decisions, an Introduction to Decision Analysis”, Duxbury Press, 2nd edition, 1996.
- Harrington, J. (2008), “Games, Strategies and Decision Making”, Worth Publishers
- Dixit, Avinash, Mulbrecht, Reiley Jr and Susan Skeath, (2009) “Games of Strategy”, W.W.Norton & Company, 3rd ed.
- Raiffa, H., J. Richardson e D. Metcalfe (2007), “Negotiation Analysis: The Science and Art of Collaborative Decision Making”, Belnap Press.
Teaching Staff
Certificações
