Decision Theory and Game Modeling

Data is displayed for the academic year: 2025./2026.

Lecturers

Prof.
Tomislav Burić
PhD

Course Description

Basic concepts of decision theory. Decision tables and decision trees. Basic criteria for decision analysis under conditions of uncertainty. Preference relations and value functions. Hierarchical decision making, AHP method. Basic concepts of game theory, Nash equilibrium. Bimatrix and matrix games. Extensive games, mixed and behavioral strategies. Evolutionary game theory. Cooperative games. Bargaining games, Nash solution. Games with portable utility.

Prerequisites

Undergraduate technical or related studies.

Study Programmes

University graduate
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Learning Outcomes

  1. Recognize the elements of decision-making problems in applications
  2. Apply decision-making methods in different models
  3. Compare different decision-making methods
  4. Recognize the game and define the associated elements of game theory in applications
  5. Create an appropriate game theory model and determine equilibrium strategies
  6. Analyze the results of game theory and decision-making models and draw appropriate conclusions

Forms of Teaching

Lectures

Lectures three hours weekly.

Independent assignments

Homework and practical work.

Grading Method

Continuous Assessment Exam
Type Threshold Percent of Grade Threshold Percent of Grade
Homeworks 0 % 20 % 0 % 0 %
Mid Term Exam: Written 20 % 50 % 0 %
Final Exam: Written 20 % 50 %
Exam: Written 0 % 100 %

Week by Week Schedule

  1. Introduction to game theory. Strategy games. Nash equilibrium.
  2. Bimatrix games. Mixed and correlated equilibrium.
  3. Zero sum games. Matrix games.
  4. Evolutionary theory of games. Symmetric bimatrix games and symmetric Nash equilibrium. Evolutionarily stable strategies.
  5. Ekstenzivne igre. Mješovite i bihevioralne strategije. Putpuni bayesovski i sekvencijalni ekvilibrij.
  6. Cooperative games. Bargaining games. Nash bargaining solution.
  7. Games with portable utility. Core. Shapley value. Nucleolus.
  8. Midterm exam.
  9. Introduction to decision theory. Decision tables, basic criteria for analysis decisions under conditions of uncertainty.
  10. Decision trees. Usefulness of decisions.
  11. Attitude towards risk. Certain equivalent.
  12. Preferences and value functions. Weak preference. Classes of indifference.
  13. Hierarchical decision-making. AHP method. Consistency indicators.
  14. Calculation of priorities. Saati eigenvector method. Potency method.
  15. Final exam.

Literature

D. Jankov Maširević (2022.), Teorija odlučivanja, Sveučilište J.J.Strossmayera u Osijeku
S. French (1986.), Decision Theory, Ellis Horwood, Chichester
H. Peters (2008.), Game Theory: A Multi-Leveled Approach, Springer Berlin Heidelberg
R. B. Myerson (1997.), Game Theory: Analysis of conflict, Harvard University Press, Cambridge, London

General

ID 252444
  Winter semester
5 ECTS
L1 e-Learning
45 Lectures
0 Seminar
0 Exercises
0 Laboratory exercises
0 Project laboratory
0 Physical education excercises

Grading System

86 Excellent
72 Very Good
58 Good
50 Sufficient

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