Research unit Economics of Change
David Ausserhofer
Research unit
Main content

Why do people act change their behavior from day to the next? As large as the number of specific reasons for behavioral change may be, in the end they can be grouped into four categories. The four basic types of explanations are: 1) because they have learnt something new about how the world functions, that is, about the relation between actions and consequences; 2) because the consequences of their actions have changed themselves; 3) because their aims have changed; and 4) because their experience teaches them to try out new ways.

All four categories can be translated into economic concepts that postulate behavioral changes when there are changes 1) in expectations, 2) in incentives, 3) in preferences, or when 4) decision makers use learning rules in order to adapt their behavior.

Orthodox (“neoclassic”) economists confined themselves to the study of beliefs and incentives, strictly assuming the rationality of all decision makers. Modern behavioral economists relax these assumptions when investigating beliefs and incentives and study adaptation of preferences and the role of bounded rational learning rules. The program of the research unit “Economics of Change” is built on all four basic mechanisms of change. It is part of the broader behavioral economics movement that has been changing the field of economics for over thirty years.

The research fellows of the unit are mainly interested in dynamic processes. How do decision makers adapt to new circumstances? How do they create new circumstances? General (micro-) economic mechanisms of change are identified and linked to a broad range of applications relevant to society, from fostering pro-social behavior, to entrepreneurship and political economy.

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David Ausserhofer
David Ausserhofer
Contact

Gebhard Glock (office)

Fon: 030 25 491 420
Fax: (030) 254 91 423
Email: gebhard.glock [at] wzb.eu

Reichpietschufer 50
D-10785 Berlin

New research articles


Games played through agents in the laboratory — a test of Prat & Rustichini's model. Ludwig Ensthaler et al. in Games and Economic Behavior
 

Online fundraising, self-image, and the long-term impact of ask avoidance. Steffen Huck and Maja Adena in Management Science
 

Quality certification for nonprofits, charitable giving, and donor's trustMaja Adena et al. in Journal of  Economic Behavior& Organization


more

New working papers

Video recording

Rethinking Growth: The Schumpeterian Perspective

WZB Distinguished Lecture by Philippe Aghion, 15 November 2018

Video clip

Research in context

Economist Kai Barron talks about his research on beliefs and expectations.

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German Design Award für Double Shift-Projekt
German Design Award für Double Shift-Projekt

Awards

Website double-shift.org has won the Red Dot Design Award, category "Best of the Best", the W³ AWARD as Gold Winner Visual Appeal/ Aesthetics and Silver Winner Science, the German Design Award, category Excellent Communication Design/ Web, as well as the iF Design Award, discipline Communications, category Websites