Year: 2006 Semester: 2-Spring (1-The autumn term 2-The spring term) Course Name: Information technology management (& marketing strategy) Total credits: 3 Weekly classroom hours: 3 Department: department of information management Is this course a semester Course? Yes, required Course? No Course number: 130054 Time: fgh, Wednesday, Place:科三 118 Course Previous: none Course Objective: The purpose of this course is to introduce the related theoretical models about decision making process including the game theory, decision under uncertainty, negotiation, breakthrough decision, etc., all of which covers the economic and psychological knowledge. This subject is suitable for the senior undergraduates who are interested in the competitive interactions of industry dynamics. And we will discuss several selected classical papers of theoretical models and real cases to learn the essence of decision theory. The students will be asked to apply the reasoning process to analyze some real industry cases and the final reading paper. Course Outline 1. Introduction of decision making 2. 3. 4. 5. 6. 7. Decision under uncertainty Decision tree and influence diagram Revising Judgments in the light of new information Decision framing and cognitive inertia The analytic hierarchy process Game theory 7.1. static game with complete information 7.2. static game with incomplete information 7.3. dynamic game with complete information 7.4. dynamic game with incomplete information 8. Negotiation models 9. Breakthrough strategy 10. Habits, addictions, and traditions 11. A theory of social interactions Text & Reference Material Textbook: Goodwin, Paul and George Wright (2004), Decision Analysis for Management Judgment, 3rd edition, John Wiley & Sons, Ltd. Reference books: Schelling, Thomas C. (1978), MIcromotives and Macrobehavior, Norton & Company. (One of the 2005 Nobel winners in Economics) Kreps, David M. (1990), Game Theory and Economic Modeling, Oxford University Press. Dixit, Avinash K. and Barry J. Nalebuff (1993), Thinking Strategically: The Competitive Edge in Business, Politics, and Everyday Life, Norton & Company. Zeckhauser, Richard J., Ralph L. Keeney and James K. Sebenius (1996), Wise Choices: Decisions, Games, and Negotiations, Harvard Business School Press. Ghemwat, Pankaj (1997), Games Businesses Play: Cases and Models, MIT Press. Luce, R. Duncan and Howard Raiffa (1985), Games and Decisions: Introduction and Critical Survey, Dover Publications. Schmidt, Susanne K. and Raymund Werle (1998), Coordinating Technology: Studies in the International Standardization of Telecommunication, MIT Press. Selten, Reinhard (1998), Models of Strategic Rationality, Springer. (One of the 1994 Nobel winners in Economics) Baker, S. Gary (1998), Accounting for Tastes, Harvard University Press. (The winner of 1992 Nobel prize in Economics) Rasmusen, Eric (2001) Games and Information: An Introduction to Game Theory, 3rd edition, Blackwell Publishers. Lewicki, Roy J., David M. Saunders, John W. Minton, and Bruce Barry (2003), Negotiation: Readings, Exercises, and Cases, 4th edition, McGraw-Hill. Dixit, Avinash K. and Susan Skeath (2004), Games of Strategy, Second Edition, Norton & Company. Off-class readings 1. 詹姆斯‧米勒(James Miller)原著,戴至中譯 (2003),洞悉商場賽局,麥格羅‧ 希爾。 2. 逢択明原著,丁小艾譯 (2004),小豬勝大豬,中國生產力中心。 3. Stryker, Perrin (1965), “Can You Analyze this Problem: A Management Exercise,” Harvard Business Review, May-June, pp.73-78. Stryker, Perrin (1965), “How to Analyze that Problem: Part II of a Management Exercise,” Harvard Business Review, July-August, pp.99-110. Argyris, Chris (1966), “Interpersonal Barriers to Decision Making,” Harvard Business Review, March-April, pp.84-97. Drucker, Peter F. (1967), “The Effective Decision,” Harvard Business Review, 4. 5. 6. Jan.-Feb., pp.92-98. Kunreuthur, Howard, Joanne Linnerooth and James W. Vaupel (1984), “A Decision-Process Perspective on Risk and Policy Analysis,” Management Science, 30(4), pp.475-485. 8. Etzioni, Amitai (1989), “Humble Decision Making,” Harvard Business Review, July-August, pp.122-126. 9. Eisenhardt, Kathleen M. (1990), “Speed and Strategic Choice: How Managers Accelerate Decision Making,” California Management Review, Spring, 32(3), pp.39-54. 10. Camerer, Colin F. (1991), “Does Strategy Research Need Game Theory?” Strategic Management Journal, Vol.12, pp.137-152. 7. 11. Roberts, Edwars B. (1991), “High-Stakes for High-Tech Entrepreneurs: Understanding the Venture Capital Decision Making,” MIT Sloan Management Review, 40(3), Winter, 32(2), pp.9-20. 12. Shell G. Richard (1991), “When Is It Legal to Lie in Negotiations?” MIT Sloan Management Review, Winter, 32(2), pp.93-101. 13. Hall, Nicholas G., John C. Hershey, Larry G. Kessler and R. Craig Stotts (1992), “A Model for Making Project Funding Decisions at the National Cancer Institution,” Operations Research, 40(6), pp.1040-52. 14. Messick, David M. and Max H. Bazerman (1996), “Ethical Leadership and the Psychology of Decision Making,” MIT Sloan Management Review, Winter, 37(2), 15. 16. 17. 18. pp.9-21. Camerer, Colin F. (1997), “Progress in Behavioral Game Theory,” Journal of Economic Perspectives, 11(4), pp.167-188. John S. Hammond, Ralph L. Keeney, and Howard Raiffa (1998), “A Rational Method for Making Trade-offs,” Harvard Business Review, March-April, pp.137-149. Eisenhardt, Kathleen M. (1999), “Strategy as Strategic Decision Making,” MIT Sloan Management Review, Spring, 40(3), pp.65-72. Jehn, A. Karen and Keith Weigelt (1999), “Chinese Thought, Game Theory, and Strategic International Negotiations,” International Negotiation, Vol.4, pp.79-93. 19. Magasin, Michael and Frieda L. Gehlen (1999), “Unwise Decisions and Unanticipated Consequences,” MIT Sloan Management Review, Fall, 41(1), pp.47-60. 20. Cross, Robert L. and Susan E. Brodt (2001), “How Assumptions of Consensus Undermine Decision Making,” MIT Sloan Management Review, Winter, 42(2), pp.84-96. 21. Hayashi, Alden M. (2001), “When to Trust Your Gut,” Harvard Business Review, Feb. pp.59-65. 22. Mintzberg, Henry and Frances Westley (2001), Decision Making—It's Not What You Think, MIT Sloan Management Review, Spring, 42(3), pp.89-93. 23. Sterman, John D. (2001), “System Dynamics Modeling: Tools for Learning in a Complex World,” California Management Review, Spring, 43(4), pp.8-25. 24. Schuweitzer, Mourice E., Lisa Ordonez and Bambi Douma(2002), “The Dark Side of Goal Setting—the Role of Goals in Motivating Unethical Decision Making,” Academy of Management Proceedings, MOC:B1-B6. 25. Bonabeau, Eric (2003), “Don’t Trust Your Gut,” Harvard Business Review, May, pp.116-124. 26. John S. Hammond, Ralph L. Keeney, and Howard Raiffa (2006), “The Hidden Traps of Decision Making,” Harvard Business Review, Jan., pp.118-126. Grading Policy 1.Final exam:25%; 2.Final report::30% (an assigned reading paper related to decision models); 3.Homework & In-class performance: 45% (including one selected off-class reading paper) Note: Communication e-mail address: clhung@ncnu.edu.tw Meeting hours: 9:00~11:00, Thursdays