Decision Making under Uncertainity

The course studies stochastic control and communication through one broader lens: decision making under uncertainty. The same lens also covers team decision theory, collaborative decision making, economics, and organization theory.


Course Outline

Lecture Topic Source
1 Decision Making under Uncertainity YouTube
2 Expected Utility Theory YouTube
3 Expected Utility Theory II YouTube
4 Expected Utility Theory III YouTube
5 Role of Information in Decision Making YouTube
6 State Space Modelling of Sequential Decision Making; Inventory Control Problem I YouTube
7 Inventory Control Problem II YouTube
8 Policy as a Solution Concept YouTube

Course Arc

This course treats several apparently different subjects as instances of the same problem template:

  • a decision maker must choose from a set of alternatives
  • some relevant variable is unknown at decision time
  • the decision may have different consequences in different scenarios
  • the available information changes the structure and difficulty of the problem
  • risk appears because outcomes vary across possible scenarios

The goal is to understand how decisions, uncertainty, information, and dynamics interact.


Core Themes

Theme Question
Decisions What action, variable, or policy should be chosen?
Uncertainty What is unknown when the decision is made?
Risk How should downside outcomes and variable consequences be evaluated?
Information Who knows what, when is it known, and how is it revealed or transmitted?
Dynamics How do current decisions affect future states and observations?

Key Takeaway

Stochastic control, communication, team theory, and economic decision problems are not isolated topics. They can be studied as variations of a single framework: choosing actions under incomplete information, while accounting for risk, information flow, and dynamics.