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Decision Theory for Economists

Author(s): Júlia Salamon, Zoltán Makó
Subject(s): Social Sciences, Economy, Education, Micro-Economics
Published by: Scientia Kiadó
Keywords: mathematical models of economy; decision theory; macro- and microlevels of economics;
Summary/Abstract: Mathematical models of economy are decision models which help leaders to prepare their decision making in the macro- and microlevels of economics. The leaders’ aim is to choose the most convenient strategies in the course of decision making. The operational research and decision theory deal with the selection of these strategies. Based on many years’ educational experience, the economist students’ greatest difficulty in understanding the discipline of operational research is the transcription of the text-mode formulated economic problem to a solvable mathematical model.Mathematical models of economy are decision models which help leaders to prepare their decision making in the macro- and microlevels of economics. The leaders’ aim is to choose the most convenient strategies in the course of decision making. The operational research and decision theory deal with the selection of these strategies. Based on many years’ educational experience, the economist students’ greatest difficulty in understanding the discipline of operational research is the transcription of the text-mode formulated economic problem to a solvable mathematical model.In order to develop the mathematical model construction to skill level, one has to solve a large number of problems. Accordingly, the main objective of this book is to practise the inscription of the mathematical model of the economic problems and to help the understanding of the economicmeanings of the parameters. The WinQSB (QSB – Quantitative Systems for business) software package and the Excel table calculation program are used to calculate the mathematical model’s numerical solution.

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