Biases and decision impairments in markets (A04)

• Subject Area: Economic Theory ; Economic Policy, Applied Economics
• Term: since 2017
• Project identifier: Deutsche Forschungsgemeinschaft (DFG) - Project number 280092119

The project investigates how market outcomes are influenced by limited information and external impediments such as deadlines, cognitive load, and complexity. The focus in the third funding period lies on the regulation of modern marketplaces, which are often characterized by substantial decision impediments like product complexity, time demand, unmanageable numbers of choice options, and the interaction with AI agents, all of which may induce decision biases. The team will derive recommendations for policy-relevant topics like consumer search, targeted advertising, privacy protocols, and online reviews, via a combination of experimental and theoretical approaches.

• DFG Programme: CRC/Transregios
• Subproject of: TRR 190: Rationality and Competition: The Economic Performance of Individuals and Firms
• Applicant Institution: Ludwig-Maximilians-Universität München
• Project Heads: Professorin Dr. Jana Friedrichsen, until 12/2024; Professorin Dr. Radosveta Ivanova-Stenzel; Professor Dr. Martin Kocher, until 12/2020; Professor David Ronayne, Ph.D.; Dr. Simeon Schudy, until 12/2024