Objective "This proposal outlines projects to develop robust and portable theories studying the impact of psychological phenomena in economic settings. The proposed work falls in three broad research agendas.My first main agenda is to formally model and economically apply a simple observation: that when people make decisions, they do not focus equally on all attributes of their available options, and overweight the attributes they focus on. I will build a set of portable models of focusing in attribute-based choice and risky choice based on the idea that a person focuses more on attributes in which her options differ more. I will also use the framework to develop novel, focus-based, theories of intertemporal choice and social preferences, as well as analyze the implications of focusing for product design, principal-agent relationships, and other economic questions.My second main agenda is to explore some implications for market outcomes, welfare, and policy of the possibility that consumers misperceive certain aspects of products. I will investigate the circumstances that facilitate the profitable deception of consumers; firms' incentives for ""innovating"" deceptive products, including novel financial products aimed at exploiting investors; how firms' ability to distinguish naive and sophisticated consumers affects the consequences of deception; whether learning on the part of consumers will help them to avoid making mistakes; and how regulators and other observers can detect consumer mistakes from market data.Two further projects apply the model of reference-dependent utility I have developed in earlier work to understand the pricing and advertising behavior of firms. I will also aim to disseminate some of my work, along with other cutting-edge research in psychology and economics, in a Journal of Economic Literature survey on ""Behavioral Contract Theory.""" Fields of science social scienceseconomics and businesseconomicssocial sciencespsychology Programme(s) FP7-IDEAS-ERC - Specific programme: "Ideas" implementing the Seventh Framework Programme of the European Community for research, technological development and demonstration activities (2007 to 2013) Topic(s) ERC-SG-SH1 - ERC Starting Grant - Individuals, institutions and markets Call for proposal ERC-2012-StG_20111124 See other projects for this call Funding Scheme ERC-SG - ERC Starting Grant Host institution KOZEP-EUROPAI EGYETEM EU contribution € 900 448,00 Address NADOR UTCA 9 1051 Budapest Hungary See on map Region Közép-Magyarország Budapest Budapest Activity type Higher or Secondary Education Establishments Administrative Contact Vanda Mohacsi (Ms.) Principal investigator Botond Koszegi (Prof.) Links Contact the organisation Opens in new window Website Opens in new window Total cost No data Beneficiaries (3) Sort alphabetically Sort by EU Contribution Expand all Collapse all KOZEP-EUROPAI EGYETEM Hungary EU contribution € 900 448,00 Address NADOR UTCA 9 1051 Budapest See on map Region Közép-Magyarország Budapest Budapest Activity type Higher or Secondary Education Establishments Administrative Contact Vanda Mohacsi (Ms.) Principal investigator Botond Koszegi (Prof.) Links Contact the organisation Opens in new window Website Opens in new window Total cost No data ESMT EUROPEAN SCHOOL OF MANAGEMENT AND TECHNOLOGY GMBH Participation ended Germany EU contribution € 293 750,62 Address SCHLOSSPLATZ 1 10178 Berlin See on map Region Berlin Berlin Berlin Activity type Higher or Secondary Education Establishments Administrative Contact Valentina Werner (Ms.) Links Contact the organisation Opens in new window Website Opens in new window Total cost No data HEINRICH-HEINE-UNIVERSITAET DUESSELDORF Germany EU contribution € 81 249,38 Address UNIVERSITAETSSTRASSE 1 40225 Dusseldorf See on map Region Nordrhein-Westfalen Düsseldorf Düsseldorf, Kreisfreie Stadt Activity type Higher or Secondary Education Establishments Administrative Contact Patricia Nitsch Links Contact the organisation Opens in new window Website Opens in new window Total cost No data
