Benefits, Cost and Decisions.

Catalog description

This course examines how decisions are made. The economic framework of rational choice theory---taking action as long as benefits outweigh costs---is used as a starting point for analyzing decision-making behavior of individuals, firms and governments. We consider how costs and benefits are measured and how to evaluate the validity of information and data used in assessing them. Basic game theoretic models are introduced to explain strategic decision-making. The limits of rational choice theory are also addressed with insights from behavioral economics. Prerequisites: Enrolled in an approved Benerd College degree completion program.