Objective
The central aim of this project is to explore how individuals form and update beliefs, and how these processes deviate from the normative Bayesian framework. By understanding these deviations, the project seeks to uncover the implications of biased beliefs for markets, consumer behaviour, and welfare. This research agenda will be developed in three interconnected parts, each addressing a crucial aspect of belief formation.
The first part studies how individuals form beliefs about others. It argues that individuals hold mistaken beliefs about others by systematically projecting their own preferences onto them; this, in turn, leads individuals to form biased perceptions of how others might behave in markets and other social contexts.
The second part focuses on people’s (in)ability to notice the correlation between others’ information and their actions. It will address why social learning may fail and how prices might distort agents’ beliefs. Moreover, this part of the project will also delve into how biased beliefs affect consumers’ interactions with market intermediaries, such as certification agencies.
The last part of the project proposes a new updating model, featuring reference dependence and narrow bracketing, to analyse how people revise their initial beliefs when new information arrives; in this way, it will help understand why in some circumstances people seem to discard new information, whereas in other situations they tend to over-react to it.
Overall, the project will take a new look at information economics through a behavioural lens, shedding light on classical and new questions, including the design of certification standards, privacy regulations, and negotiation protocols. It will do so by developing novel theoretical models, which will be then tested with carefully designed experimental studies.
Fields of science (EuroSciVoc)
CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: The European Science Vocabulary.
CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: The European Science Vocabulary.
You need to log in or register to use this function
Keywords
Project’s keywords as indicated by the project coordinator. Not to be confused with the EuroSciVoc taxonomy (Fields of science)
Project’s keywords as indicated by the project coordinator. Not to be confused with the EuroSciVoc taxonomy (Fields of science)
Programme(s)
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
-
HORIZON.1.1 - European Research Council (ERC)
MAIN PROGRAMME
See all projects funded under this programme
Topic(s)
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Funding Scheme
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
HORIZON-ERC - HORIZON ERC Grants
See all projects funded under this funding scheme
Call for proposal
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
(opens in new window) ERC-2025-COG
See all projects funded under this callHost institution
Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.
80138 Napoli
Italy
The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.