PPE 3003-401/PSYC 2750-401: Behavioral Economics and Psychology

(Fall 2025)

Author

Instructor: Pei-Hsun Hsieh

Course Information

Course Description

Our understanding of markets, governments, and societies rests on our understanding of choice behavior, and the psychological forces that govern it. This course will introduce you to the study of choice, and will examine in detail what we know about how people make choices, and how we can influence these choices. It will utilize insights from psychology and economics, and will apply these insights to domains including risky decision making, intertemporal decision making, and social decision making.

Textbooks

Supplementary Materials

All supplementary materials are available under the Course Materials @ Penn Libraries tab on Canvas.

Course Requirements and Grading

Your grade will be based on the following components: Group Discussion (20%), Quizzes (30%), the Midterm Exam (25%), and the Final Exam (25%). Below is a brief description of each requirement:

  • Group Discussion (20%): You will work in groups of six for discussion questions and as a study group.

    • Group Formation (5%): You are required to form groups of six by September 9. Each group must designate a leader. The group list and leader must be confirmed by the deadline; failure to submit your group by the deadline will result in the loss of 5% and may limit your ability to complete later group assignments.
    • Group Discussion (15%): Group discussions will take place periodically throughout the semester. Each group must answer the assigned discussion questions publicly in class during discussion sessions. If no one in a group responds when called upon, all members will lose 5% of the final grade for that class session, up to a maximum deduction of 15%.
      • Your group will receive credit as long as it shares responses publicly in class during the discussion session, regardless of whether the answers are correct.
      • However, I may ask follow-up questions, so please ensure your group’s responses are thoughtful and well-prepared.
    • Study Group: You are encouraged to prepare for quizzes and exams with your group.

  • Quizzes (30%): There will be four in-class quizzes, each worth 10% of your grade. The lowest quiz grade will be dropped. All quizzes are closed book.

  • Midterm Exam (25%) and Final Exam (25%): Both exams will be held in person, in class, and on paper. They are closed book.

There will be no extra credit opportunities, and grades will not be curved.

Grading Scale

93+ A 77-79 C+ 60-63 D-
90-92 A- 74-76 C 0-59 F
87-89 B+ 70-73 C-
84-86 B 67-69 D+
80-83 B- 64-66 D

Course Outline

We will cover the following topics during the semester:

  • Topic 1: What Is Behavioral Economics?
  • Topic 2: Core Concepts in the Study of Decision-Making
  • Topic 3: Prospect Theory I – Choice with Risk
  • Topic 4: Prospect Theory II – Choice under Certainty
  • Topic 5: Prospect Theory III – Origins and Applications
  • Topic 6: Incentives
  • Topic 7: Intertemporal Choice
  • Topic 8: Learning from New Information
  • Topic 9: Search and Satisficing (if time permits)
  • Topic 10: Social Preferences (if time permits)

Tentative Course Schedule

The instructor reserves the right to make reasonable changes to the syllabus and the class schedule during the semester. Any changes will be announced in class.

  • Week 1 (August 26 & 28)
  • Week 2 (September 2 & 4)
  • Week 3 (September 9 & 11): No Thursday class (conference attendance).
  • Week 4 (September 16 & 18)
    • Quiz 1
  • Week 5 (September 23 & 25)
  • Week 6 (September 30 & October 2)
  • Week 7 (October 7 & 9): No Thursday class (Fall Term Break).
  • Week 8 (October 14 & 16)
    • Quiz 2
  • Week 9 (October 21 & 23)
  • Week 10 (October 28 & 30)
    • Midterm Exam (Thursday)
  • Week 11 (November 4 & 6)
    • Quiz 3
  • Week 12 (November 11 & 13)
  • Week 13 (November 18 & 20)
  • Week 14 (November 25 & 27): No Thursday class (Thanksgiving).
    • Quiz 4
  • Week 15 (December 2 & 4)
    • Final Exam (Thursday)

Course Policies

Attendance

You are required to attend all quizzes and exams in person and on time. Make-up quizzes and exams will be offered only in cases of illness, a death in the family, religious observance, or other unusual circumstances (see the Missed Quizzes and Exams policy below).

Your group is also responsible for answering discussion questions in class. While not every member of a group must be present to answer, there is a penalty if the group fails to respond in person (see the Course Requirements and Grading policy above).

You are expected to attend lectures and actively engage by asking questions. However, there is no direct grade penalty for individual absences (as long as your group fulfills the discussion requirement). If you miss a class, you are responsible for obtaining notes and any announcements from classmates to catch up on missed material.

Missed Quizzes and Exams

Make-up quizzes will be offered only in cases of illness, a death in the family, religious observance, or other unusual circumstances. Accommodations will be considered on a case-by-case basis, and you may be required to provide documentation. If you anticipate missing a quiz or exam, you must notify me at least one week in advance. Otherwise, accommodations will not be made except in emergencies. In the case of an emergency, please contact me as soon as possible afterward.

Office Hours

If you have questions about the course, feel free to stop by during office hours or schedule an appointment if the designated time does not work for you. Please come prepared with specific questions that arise during class or while reviewing the slides.

I welcome all questions—my role is to help you understand the theories covered in this course. However, you are expected to review the slides and make a genuine effort to understand the material first, as true understanding comes from engaging with it yourself. You are also encouraged to discuss questions with your peers before coming to office hours.

Please note that office hours are not a substitute for missed classes or for general review sessions without specific questions. If you miss a class, you are responsible for obtaining notes from classmates to catch up on the material.

Email Policy

If you have any questions about the course, feel free to contact with me by email. Please include “PPE 3003-401” in the email subject and your full name in the main text. I will get back to you within two business days. Please follow up if I don’t respond within that timeframe.

Academic Integrity

Make sure you are familiar with Penn’s Code of Academic Integrity https://catalog.upenn.edu/pennbook/code-of-academic-integrity/. I have a zero tolerance policy for plagiarism and cheating, and all violations will result in substantial penalties. If you have questions about academic misconduct and plagiarism, please do not hesitate to contact me.

Use of AI

You can use generative AIs as a personal learning assistant, but keep in mind that if you rely on AIs for everything without digesting and evaluating their responses with your own knowledge, you are not truly learning. While generative AIs can answer simple questions, they may struggle with complex questions that are not within their training sets. Furthermore, the AI’s understanding may differ from my expectations in this class.

For open-book assignments, using AIs to proofread your drafts is an appropriate use. However, for closed-book quizzes and exams, using AIs will be considered a violation of Penn’s Code of Academic Integrity.

Resources

Academic Support and Disability Services

The Weingarten Center offers a variety of resources to support all Penn students in reaching their academic goals. All services are free and confidential. To contact the Weingarten Center, call 215-573-9235. The office is located in Stouffer Commons, 3702 Spruce Street, Suite 300.

Academic Support

Learning consultations and learning strategies workshops support students in developing more efficient and effective study skills and learning strategies. Learning specialists work with undergraduate, graduate, and professional students to address time and project management, academic reading and writing, note-taking, problem-solving, exam preparation, test-taking, self-regulation, and flexibility.

Undergraduates can also take advantage of free on-campus tutoring for many Penn courses in both drop-in and weekly contract formats. Tutoring may be individual or in small groups. Tutors will assist with applying course information, understanding key concepts, and developing course-specific strategies. Tutoring support is available throughout the term but is best accessed early in the semester.

Disability Services

The University of Pennsylvania is committed to the accessibility of its programs and services. Students with a disability or medical condition can request reasonable accommodations through the Weingarten Center website. Disability Services determines accommodations on an individualized basis through an interactive process, including a meeting with the student and a review of their disability documentation. Students who have approved accommodations are encouraged to notify their faculty members and share their accommodation letters at the start of each semester. Students can contact Disability Services by calling 215-573-9235.

Penn Wellness Resources

You can find a number of different health resources from Wellness at Penn (https://wellness.upenn.edu/).

SHAC (Student Health and Counseling)

SHAC (Student Health and Counseling) https://wellness.upenn.edu/student-health-and-counseling

  • For Medical Services students can go to 3535 Market Street, 1st Floor. They are open M-F 9:00-4:30 and Saturday 9:00-11:30. For after-hours help call 215-746-3535 (24/7). If the issue is life threatening, call 911.
  • For Counseling Services students can go to 3624 Market Street, 1st Floor West or call 215-898-7021. You or your students can call this number 24/7 and a clinician will answer. Counseling Services offers free, confidential mental health services to all students at Penn.

If You Have Financial Difficulties

It is important to me that you have the resources you need to be able to focus on learning in this course – this includes both the necessary academic materials as well as taking care of your day-to-day needs.

Students experiencing difficulty affording the course materials should reach out to the Penn First Plus office (pennfirstplus@upenn.edu).

Students who are struggling to afford sufficient food to eat every day and/or lack a safe and suitable space to live should contact Student Intervention Services (vpul-sisteam@pobox.upenn.edu).

Students may also wish to contact their Financial Aid Counselor or Academic Advisor about these concerns.

You are welcome to notify me if any of these challenges are affecting your success in this course, as long as you are comfortable doing so – I may have resources to support you.

Other Resources

Disclaimer

I reserve the right to change the syllabus at any time.