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| Research Unit: Market Behavior |
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How well markets function determines not only material well-being but
also access to education and work. The organization of a market and
the rules governing it affect the behavior of market participants
and therefore the market outcome. Moreover, psychological aspects of
behavior play an important role, but they have been neglected so far
in the context of markets. The researchers of this unit study
individual behavior in strategic situations and the effects of
bounded rationality and social preferences on the market outcome.
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