Rational choice theory

Pre-requisites: Finished Logic course.

Course objectives: The aim of the course is to find formal models of individual and group decision-making that can be helpful in making valid decisions. The emphasis is on the philosophical aspect of normative rational choice theory which esablishes the standards of rationality.

Course description: The first part of the course deals with the establishment of rational decision making models for individuals in circumstances involving risk and uncertatnity. The second part of the course deals with issues of coordination of individual decisions during group decision-making process.

Learning Outcomes: Although supporters of rational choice theory do not assume that this theory fully describes the economic, social or psychological reality, knowledge of these models can help in achieving valid decisions.

Literature/Reading:

• Dubravka Pavličić: Teorija odlučivanja, Ekonomski fakultet u Beogradu, Beograd, 2004
• Božo Stojanović: Teorija igara, Službeni Glasnik, Beograd, 2005
• Michael D. Resnik: Choices, University of Minnesota Press, Minneapolis, 1987.