# Logic and Rational Decisions

advertisement ## Logic and Rational Decisions

P

ROF

.

G

IOVANNI

M

ARSEGUERRA

COURSE AIMS

This course aims to provide students with the basic methods relative to logic of propositions and logic of reasoning and to present the main elements of the theory of rational decisions which, lies at the root of many of today’s most important theories and applications in both an economic environment and in a more general sense within social science.

COURSE CONTENT

Logic of prepositions

Introduction to logic. Propositions and operations between prepositions.

Equivalence of prepositions. Inference rules. Truth tables.

Set theories

Sets. Operations between sets. Relations between sets: relation of order and equivalence. Correspendence, applications, functions. Outline of numerical sets.

Probability

Introduction. Random experiments, sampling. Probability, axiomatic definition and different interpretations of probability. Properties of measuring probability.

Calculating probability. Casual uni-dimensional discrete variables. Average and variance.

Individual decisions

Introduction. Rationality. Intelligence. Rational choice: certainty, uncertainty, strategic interaction. Choosing under conditions of certainty. Relations of preference. Utility functions. Indifference curves. Indifference maps. Marginal utility. Choosing under conditions of uncertainty. Lottery. Theory of expected utility.

Elements of the theory of games

Games in strategic form: introduction, definition and general principles. Various examples. Dominant strategies. The Nash equilibrium in pure strategies. Mixed strategies. Belief. The Nash equilibrium in mixed strategies. The Nash theorem.

READING LIST

Reading list will be indicated during the course.

TEACHING METHOD

Lectures and exercises, course material available online.

ASSESSMENT METHOD

Written examination followed by an oral examination.

NOTES

Further information can be found on the lecturer's webpage at http://docenti.unicatt.it/web/searchByName.do?language=ENG or on the Faculty notice board.