Work detail

Models of Individual Decision Making in Economics

Author: Mgr. Michal Skořepa
Year: 1995 - summer
Leaders: prof. RNDr. Jiří Hlaváček CSc.
Work type: Economic Theory
Language: Czech
Pages: 76
Awards and prizes: M.A. with distinction from the Dean of the Faculty of Social Sciences for an extraordinarily good masters diploma thesis
Abstract: Within many current economic theories, we find quite a few models of the way an individual decides. These models start from various assumptions and emphasise various aspects of the individual's decision making process. In the present thesis, selected models of this type are described - in particular, search models, models of expectation formation, the model of maximisation of a criterial function with constraints and the model of bounded rationality. The thesis thus covers models of decision making under certainty, under risk as well as under uncertainty. For the description, a unified terminology was selected, which makes relations between various models more salient. A lot of attention is devoted to the question of how informed the individual is.
The thesis should be valuable for research, as its unified terminology
uncovers linkages among various models and the roomfor their further
development. It should be valuable for didactic purposes as well, since it
is the first text in Czech explaining a number of models of individual
decision making.

Keywords: individual decision making, psychology, information, search,
expectation, utility, uncertainty, bounded rationality

JEL Classification: D1, D8
Downloadable: Diploma Thesis - Skořepa


McKinsey & Company