Behavioral & Decision Sciences (BDS)
BDS 5010 Behavioral Science: Theory and Application of Experimental Methods
Our understanding of different mechanisms and (economic) relationships is hampered by a lack of data and - more often than not - either the observation or the data is not reliable. In recent decades, through the work of pioneers in the behavioral and experimental economics fields, such as Daniel Kahneman and Vernon Smith, economics experiments have become a vital part of the scientific discourse, facilitating our understanding of the world we live in (much like in biology, chemistry, physics, etc.). In this course, we will explore economic behavior by developing a research idea, designing an experiment, then carrying out the experiment under controlled conditions. Essentially, you will learn how to think about ideas, generate ideas, and use economic experiments to test them. Based on an evaluation prior to the start of the program MBDS students will be assigned to ONE of three versions of this course and should complete the course during their first academic year. Permits offered to non-MBDS students if space is available. Non-MBDS students would also be subject to evaluation before being able to register.
Fall, Spring, and Summer Terms
1 Course Unit
BDS 5020 Norms and Nudges
Social norms are the rules we live by, and we encounter them in any area of our life. Social norms often guarantee the smooth functioning of a group or organization. Sometimes, however, these norms are inefficient or do not benefit society at large. What can we do to change these harmful collective behaviors? Social psychology, philosophy, sociology, rational-choice, legal theory, and even economics, are investigating and theorizing pro-social behavior, justice motivation, and moral and social norms. In this course, we will examine the latest and best in this emerging multidisciplinary field. Students will be encouraged to apply its findings and methods to their area of interest.
Spring
1 Course Unit
BDS 5030 Behavioral Interventions for Policy and Organizations
A core MBDS program course requirement, this course addresses methodological, conceptual, and practical issues that apply to policies and services offered by governments and organizations. We will discuss the conditions that must be satisfied to make different types of behavioral interventions effective and the incentives that stakeholders face. The course relies on the main theoretical and empirical findings of modern policy analysis and upon an extensive set of case studies. Students are required to master conceptual material and main empirical findings to confront and solve practical cases for public policy and organizations. Permits offered to non-MBDS students if space is available.
1 Course Unit
BDS 5050 Research Methods for Behavioral Science
The course is a survey of methods of research in behavioral and decision sciences. We will cover principles of scientific thinking, operationalizing research questions into testable ideas, and the ethics of behavioral research. A significant portion of the class will be devoted to study designs. We will cover basics of experimental design, quasi-experiments, and observational surveys. The class will also provide an introduction to qualitative research methods, including focus groups, unstructured and semi-structured interviews, and ethnographies. We will conclude the semester with the methods of communicating our findings to different types of audiences. We will analyze research processes and results from the perspective of the information consumer. The class will be useful for those interested in learning how to read and write behavioral science publications and how to design one's own studies. For practical skills in using software to analyze data, see BDS 5220 and BDS 5160.
Fall
1 Course Unit
BDS 5060 Applied Statistics for Behavioral & Decision Sciences
This course is a basic primer for key concepts in statistics needed for anyone that wants to take additional classes in behavioral and decision sciences- or work in a relevant field. This course helps serve as a prerequisite for the MBDS Program.
Summer Term
0.5 Course Units
BDS 5090 Foundations of Game Theory and Economic Reasoning for Behavioral Science
Foundations of Game Theory and Economic Reasoning for Behavioral Science introduces the core concepts underlying economic and strategic analysis. The course develops the basic tools of rational choice and game theory used to model incentives, equilibrium, welfare, and strategic interaction. Students learn how to represent decision problems, analyze best responses and equilibrium behavior, and reason about efficiency and coordination in multi-agent settings. The course is designed as a preparatory foundation for students entering the MBDS program without prior coursework in economics or game theory. It provides the rational choice benchmark and a conceptual framework necessary for subsequent coursework in behavioral science, public policy, and strategic analysis. No prior background in economics or game theory is required.
Summer Term
0.5 Course Units
BDS 5110 Negotiation Behavior
We negotiate every day-with merchants, service providers, employers, coworkers, friends, and family-determining the price we will pay, the amount of our compensation, where to go to dinner, who will clean the kitchen, etc. Although negotiations are a ubiquitous part of our everyday lives, many of us know little about the strategy and psychology of effective negotiations. Why do we sometimes get our way, while other times we walk away feeling frustrated by our inability to achieve the agreement we desire? Over the past few decades, research in social psychology and decision science has sought the answer to this question and created a rich body of knowledge on bargaining behavior, leading to a well-validated prescription on how to negotiate. In this course, you will learn both the how and the why of negotiation behavior. Through role-playing exercises, you will be able to evaluate your own negotiation behavior as well as that of your classmates and receive advice on how to optimize it to achieve your desired outcomes. Importantly, you will also read and discuss research articles that have led to such practical advice. Non-MBDS students may request a permit to register through Path@Penn.
Fall or Spring
1 Course Unit
BDS 5150 Game Theory, Behavior and Applications
Game theory studies strategic interactions—situations in which outcomes depend not only on one’s own choices, but also on the choices of others—traditionally under the assumption of perfectly rational agents. This course covers game theory with a focus on behavioral science and real-world applications. It begins by introducing the core concepts, assumptions, methods, and tools of game theory. In addition to formal analysis, the course examines the empirical performance of standard predictions by confronting them with experimental evidence and incorporating behavioral models that account for bounded rationality, limited beliefs, and social norms and preferences. The objective is to understand both the logic of strategic reasoning and the conditions under which observed behavior departs from classical assumptions. Throughout the course, formal tools are treated as instruments for analyzing and structuring real strategic problems. The emphasis is not on formal proofs, but on applying these tools to better understand and gain insight into strategic situations in markets, organizations, politics, and social interactions. Students learn how to model strategic interactions using the tools of game theory and apply them to interactions involving individuals across a variety of settings.
Fall or Spring
1 Course Unit
BDS 5160 Data Science and Quantitative Modeling
(This course fulfills the MBDS program's quantitative course requirement.) Increasingly, decision-makers and systems rely on intelligent technology to analyze data systematically to improve decision-making. Data science is opening new pathways to improve decision-making in private and public organizations. Through lectures and real-world examples, this course will present a practical understanding of the fundamental methods used by data scientists including data management techniques, quantitative modeling, and data visualization. The primary emphasis is on understanding the fundamental concepts and applications of data science in the context of behavioral and decision sciences. We will cover several algorithms though this is not an algorithms course. We will examine real-world examples and cases to place data science techniques in context, to develop data-analytic thinking, and to illustrate that proper application is as much an art as it is a science. Permits offered to non-MBDS students if space is available.
Spring
1 Course Unit
BDS 5210 Judgments & Decisions
This course addresses the ideal standards of judging and deciding, and the ways in which people fall short of these standards, with emphasis on the latter. We will discuss heuristics and other intuitive strategies that people may use in day-to-day thinking, and the biases that result from this use. We will apply this approach to shed light on faulty analyses in medicine, law, and everyday thinking. Understanding the ideals of good thinking and causes of our failure to conform to these ideals may ultimately help improve the decisions we make in private and professional lives. Permits offered to non-MBDS students if space is available.
1 Course Unit
BDS 5220 Statistical Reasoning for Behavioral Science
The complexity of human behavior exceeds that of most phenomena studied in the natural sciences. Any inference about human behavior and decision-making has to rely on statistical methods rather than on deterministic modeling. In this class, students will learn the methods of descriptive and inferential statistics used in behavioral science from the basics to those more commonly used. In this sense, this is a class on theoretical statistics, but we will go beyond theory to apply these methods to answer our own research questions. As such, this is also a class on applied statistics. We will rely heavily on statistical programming languages (namely, R) and version control systems (Git) to create statistical reports. Finally, we will work with new research in the field and learn to critically assess the statistical methods used therein. After completing this class, students will be competent in reading cutting-edge scientific literature, producing their own results using the more commonly usedmethods, and able to critically assess the limitations of their own and other people's research. Non-MBDS students must complete a permit request.
1 Course Unit
BDS 5250 Organizational Behavior
In order to successfully manage an organization, its groups, and its individuals, you need to first understand why people in a given organization do what they do. In other words, an understanding of the human side of management and an ability to communicate that understanding are essential to your success in any career you choose. This course assumes that in order to accomplish organizational goals; you will need to work for other people, work with other people, and supervise other people. To do so effectively, you need to understand the behavioral science behind organizations. This course will survey several topics in service of this goal, including decision biases, motivation, power and influence, networks, diversity, team processes and culture. Throughout, you will be asked to demonstrate your knowledge of these concepts and your ability to use them to analyze situations as well as to provide prescriptions for change. Permits offered to non-MBDS students if space is available.
1 Course Unit
BDS 5310 Behavioral Science in Action: Past, Present & Future
This course offers a unique opportunity to understand how behavioral science has been applied in practice, from one of the leading figures in the field. It will be pragmatic, but also grounded in the latest findings and cutting edge thinking. We will focus on understanding and practising the skills that behavioral scientists use in their jobs. A range of guest speakers will explain how they have achieved change in leading organisations. We will explore what employers of behavioral scientists look for. And finally, we will look to the future of applied behavioral science, drawing on the instructor's recent "Manifesto for Applying Behavioral Science."
Fall
1 Course Unit
BDS 5410 AI and Human Behavior
Artificial intelligence (AI) holds the promise of providing many services originally carried by humans, affecting many aspects of human life. While some emphasize the power and usefulness of these technologies, others point out challenges which this process raises. These challenges are not just technical limitations, but also the ability to align these complex models with human users’ goals and values. The tools used by behavioral researchers and psychologists to understand human behavior and cognition are in a unique position to provide insights into machine behavior. In this course we aim to understand how AI models operate and make decisions, especially when replacing a human decision maker. Throughout the course students will develop an understanding of what artificial agents are, the difference between them and human decision makers, and the challenges and promises they hold. The course will be organized in four modules, each including a detailed discussion of a specific issue, and introducing broader topics that bear on all modules. The modules therefore build and draw from each other, providing a comprehensive view of the field of machine behavior.
Fall or Spring
1 Course Unit
BDS 5550 Groups and Networks
Understanding social groups and networks is a crucial component to understanding the nuances of interdependent behavior. The first aim of the class is to critically examine the theoretical approaches used to conceptualize the formation and performance of social groups as well as their dynamics from a social network perspective. The next part of the course will cover applied aspects of social network data collection and analysis including concepts such as sampling, descriptive statistics, and inferential models. We will discuss the design and implementation of field studies to answer research questions about community formation, homophily, and the spread of behavior and beliefs. The last part of the course will introduce students to agent-based modeling; We will study diffusion, contagion, and the emergence of norms using microsimulations. The course will wrap up with an overview of the presented theories, methods, and approaches of social network analysis and students will have the opportunity to reflect and synthesize about these overarching concepts. Please note: the course will draw from current literature and applied research and while some parts of the course will be taught in R and NetLogo, coding is not the primary focus of the course. Proficiency in R or Netlogo is not required
1 Course Unit
BDS 5880 Special Topics in Behavioral & Decision Sciences
This course offers students an opportunity to learn, interact with, and discuss cutting edge topic areas in behavioral and decision sciences.
1 Course Unit
BDS 5991 Independent Study
The Independent Study is only open to MBDS students.
0.5-1 Course Unit
BDS 5996A Capstone Project: Applied Behavioral Science: Design, Test and Implement Behavioral Interventions
The MBDS Capstone Project: Applied Behavioral Science is a year-long, two-semester course that connects students with industry leaders to apply behavioral science to real-world challenges. In the fall (BDS 5996A), students engage with industry partners (MBDS Industry Affiliates) who present their project briefs for the year. They gain insight into how behavioral science is applied across organizations and explore career pathways and market opportunities for MBDS graduates. In the spring (BDS 5996B), students work in teams to address the selected MBDS Industry Affiliate challenge, drawing on the strategic guidance and instruction from the fall semester. The course also includes professional development workshops. The program prepares students to apply their acquired skills immediately after graduation. Enrollment requires registration in BDS 5996A (fall) and BDS 5996B (spring). This course is not open to MBDS submatriculants while completing undergraduate coursework.
Two Term Class, Student must enter first term; credit given after both terms are complete
0.5 Course Units
BDS 5996B Capstone Project: Applied Behavioral Science: Design, Test and Implement Behavioral Interventions
The MBDS Capstone Project: Applied Behavioral Science is a year-long, two-semester course that connects students with industry leaders to apply behavioral science to real-world challenges. In the fall (BDS 5996A), students engage with industry partners (MBDS Industry Affiliates) who present their project briefs for the year. They gain insight into how behavioral science is applied across organizations and explore career pathways and market opportunities for MBDS graduates. In the spring (BDS 5996B), students work in teams to address the selected MBDS Industry Affiliate challenge, drawing on the strategic guidance and instruction from the fall semester. The course also includes professional development workshops. The program prepares students to apply their acquired skills immediately after graduation. Enrollment requires registration in BDS 5996A (fall) and BDS 5996B (spring). This course is not open to MBDS submatriculants while completing undergraduate coursework.
Two Term Class, Student must enter first term; credit given after both terms are complete
Prerequisite: BDS 5996A
0.5 Course Units
BDS 5999 Behavioral Science Individual Capstone
Behavioral Science Individual Capstone for cohorts before 2022.
1 Course Unit