A02
Biased Beliefs in Dynamic Decisions in Competitive Markets
Summary

Project summary

Project A02 considers the dynamics of expectations and household decisions in various domains. In addition to labor market policy we focus on the implications of monetary policy and climate policy. Recurring themes in our studies are biased expectations about long-run expectations, policy uncertainty and the role of communication, which we investigate in laboratory experiments and household surveys. We also aim to estimate the effects of biased beliefs on decisions.