Collaborative Research Center (CRC TRR 190) funded by the German Research Foundation; our focus is on competitive behavior by individuals and firms in cases where rationality may be limited. Website: http://rationality-and-competition.dehttps://bsky.app/profile/rationalitycrc.bsky.socialhttps://bsky.app/profile/rationalitycrc.bsky.social/post/3mll4nd4tgp2pHow competitive neutrality falls short: Our causal analysis reveals that state ownership systematically induces preferential treatment for public hospitals over private ones, a bias that becomes significantly more acute under the pressure of upcoming elections. https://190researchblog.substack.com/p/state-ownership11 May 2026 11:00 +0000at://did:plc:7pfj5farikpmbasd5bba6uj5/app.bsky.feed.post/3mll4nd4tgp2phttps://bsky.app/profile/rationalitycrc.bsky.social/post/3mkzjet6hgr25How "Amazon’s Choice" badges steer choice: We show that they drive engagement despite competing signals, yet disproportionately favors platform-sold products. Crucially, this boost persists after the badge is removed, potentially reinforcing long-term market advantages. https://190researchblog.substack.com/p/badge04 May 2026 11:00 +0000at://did:plc:7pfj5farikpmbasd5bba6uj5/app.bsky.feed.post/3mkzjet6hgr25https://bsky.app/profile/rationalitycrc.bsky.social/post/3mkhw4o4s5b25Why incentive-compatibility isn't enough for data quality: Our new online experiment shows that popular belief elicitation methods like BSR and BDM fail to outperform simple, unincentivized introspection. https://190researchblog.substack.com/p/complex-incentives27 Apr 2026 11:00 +0000at://did:plc:7pfj5farikpmbasd5bba6uj5/app.bsky.feed.post/3mkhw4o4s5b25https://bsky.app/profile/rationalitycrc.bsky.social/post/3mjwctxv6ue2yHow does ambiguity affect trade between a price-setting seller and an ambiguity-sensitive buyer? We find that the right kind of ambiguous information makes both the buyer and seller better off than any possible unambiguous information. https://190researchblog.substack.com/p/ambiguous-product-information20 Apr 2026 11:00 +0000at://did:plc:7pfj5farikpmbasd5bba6uj5/app.bsky.feed.post/3mjwctxv6ue2yhttps://bsky.app/profile/rationalitycrc.bsky.social/post/3mjeplmfudy26How structured management falls short in a crisis: Our study of Spanish firms shows that formal practices, while driving long-run productivity, paradoxically lead to lower performance during downturns because of higher short-run adjustment costs. https://190researchblog.substack.com/p/intangibles13 Apr 2026 11:00 +0000at://did:plc:7pfj5farikpmbasd5bba6uj5/app.bsky.feed.post/3mjeplmfudy26https://bsky.app/profile/rationalitycrc.bsky.social/post/3mit4dmbllr2zWhy we’ve been underestimating the economic engine of big cities: Our new analysis of office rents reveals that productivity gains are hidden in high property prices, meaning the true economic advantage of large cities is actually 33% to 50% higher than previously measured. https://190researchblog.substack.com/p/urban-productivity06 Apr 2026 11:00 +0000at://did:plc:7pfj5farikpmbasd5bba6uj5/app.bsky.feed.post/3mit4dmbllr2zhttps://bsky.app/profile/rationalitycrc.bsky.social/post/3mibj2laq7y2zHow mystery products fail to captivate consumers despite the thrill of the unknown: We show that the mix of potential items is the main driver of value, with hidden odds inducing a steeper price discount when the outcomes vary significantly in quality or brand prestige. https://190researchblog.substack.com/p/mystery30 Mar 2026 11:00 +0000at://did:plc:7pfj5farikpmbasd5bba6uj5/app.bsky.feed.post/3mibj2laq7y2zhttps://bsky.app/profile/rationalitycrc.bsky.social/post/3mhpz5wbpka23How selection bias masks the true size of the gender pay gap: Our new approach reveals that positive selection into employment systematically widens the gap for less educated workers at lower quantiles while narrowing it among top earners. https://190researchblog.substack.com/p/gender-pay-gap23 Mar 2026 12:00 +0000at://did:plc:7pfj5farikpmbasd5bba6uj5/app.bsky.feed.post/3mhpz5wbpka23https://bsky.app/profile/rationalitycrc.bsky.social/post/3mh6fvtcnop2qWhy is there less beautiful architecture than we'd like? Our research shows that because neighbours get the benefits for free while builders pay extra, the market systematically undersupplies the architecture we prefer, making a construction subsidy the most efficient fix. https://190researchblog.substack.com/p/market-forces16 Mar 2026 12:00 +0000at://did:plc:7pfj5farikpmbasd5bba6uj5/app.bsky.feed.post/3mh6fvtcnop2qhttps://bsky.app/profile/rationalitycrc.bsky.social/post/3mgmsnivmwo2mHow AI restrictions can backfire in higher education: Our new experiment shows that unrestricted access to AI tutors fosters significantly better learning outcomes than restricted sessions by enabling gradual scaffolding rather than disruptive, intensive bursts of usage. https://190researchblog.substack.com/p/scaffolding09 Mar 2026 12:00 +0000at://did:plc:7pfj5farikpmbasd5bba6uj5/app.bsky.feed.post/3mgmsnivmwo2mhttps://bsky.app/profile/rationalitycrc.bsky.social/post/3mg37e2xnlk2mHow behavioral design can undermine user value despite maximizing engagement: Our experiment shows it doubles app usage time but systematically induces a significantly lower willingness to pay than designs prioritizing transparency and user choice. https://190researchblog.substack.com/p/captured-attention02 Mar 2026 12:00 +0000at://did:plc:7pfj5farikpmbasd5bba6uj5/app.bsky.feed.post/3mg37e2xnlk2mhttps://bsky.app/profile/rationalitycrc.bsky.social/post/3mfjm4a2ojk2mHow to explain why stocks pay so well while interest rates stay low: Our paper shows that combining rare disasters with tail aversion explains these puzzles without assuming extreme risk aversion, matching real-world data while staying consistent with microeconomic evidence. https://190researchblog.substack.com/p/disasters23 Feb 2026 12:00 +0000at://did:plc:7pfj5farikpmbasd5bba6uj5/app.bsky.feed.post/3mfjm4a2ojk2mhttps://bsky.app/profile/rationalitycrc.bsky.social/post/3mexytdkige2iHow AI integration in research can fall short despite rapid adoption: Our large-scale survey of 6215 researchers shows that a widespread prompting skill gap and persistent gender disparities in familiarity systematically hinder the technology's transformative potential. https://190researchblog.substack.com/p/ai-in-research16 Feb 2026 12:00 +0000at://did:plc:7pfj5farikpmbasd5bba6uj5/app.bsky.feed.post/3mexytdkige2ihttps://bsky.app/profile/rationalitycrc.bsky.social/post/3megfl4qgqn2iWhy the motherhood penalty persists: Our analysis shows that declines in general competencies like numeracy account for at most 10% of the long-term child penalty in earnings, suggesting that gender norms, not skill depreciation, remain the primary driver of inequality. https://190researchblog.substack.com/p/earnings-gap09 Feb 2026 12:00 +0000at://did:plc:7pfj5farikpmbasd5bba6uj5/app.bsky.feed.post/3megfl4qgqn2ihttps://bsky.app/profile/rationalitycrc.bsky.social/post/3mduscikova2gHow do adults react to data on educational inequality? We show that data on the wealth gap in German schools causes people to agree that circumstances impact educational success and increases private donations. Yet, it doesn't change support for government spending. https://190researchblog.substack.com/p/luck02 Feb 2026 12:00 +0000at://did:plc:7pfj5farikpmbasd5bba6uj5/app.bsky.feed.post/3mduscikova2ghttps://bsky.app/profile/rationalitycrc.bsky.social/post/3mdd7w2dban2kDoes religious education in school create life-long believers? We exploit staggered German state reforms to show that abolishing compulsory religious education significantly reduced students' religiosity as adults and led to higher labor-market participation and earnings. https://190researchblog.substack.com/p/religion26 Jan 2026 12:15 +0000at://did:plc:7pfj5farikpmbasd5bba6uj5/app.bsky.feed.post/3mdd7w2dban2khttps://bsky.app/profile/rationalitycrc.bsky.social/post/3mcu7e4xqbc2q📣 Call for Papers | Riederau Workshop on People’s Understanding of and Support for Economic Policies We are pleased to announce the Riederau Workshop on People’s Understanding of and Support for Economic Policies, taking place 8–10 September 2026 in Riederau am Ammersee (Germany). https://econexperiments.eu/RiederauWorkshop/Home.php20 Jan 2026 12:55 +0000at://did:plc:7pfj5farikpmbasd5bba6uj5/app.bsky.feed.post/3mcu7e4xqbc2qhttps://bsky.app/profile/rationalitycrc.bsky.social/post/3mcrlrk4nak2zHow does competitive pressure fail to protect buyers in information markets? Our new model of "portfolio competition" shows that when signals are complements, sellers leverage the buyer's desire for the joint portfolio to extract the full social surplus. https://190researchblog.substack.com/p/portfolio-competition19 Jan 2026 12:00 +0000at://did:plc:7pfj5farikpmbasd5bba6uj5/app.bsky.feed.post/3mcrlrk4nak2zhttps://bsky.app/profile/rationalitycrc.bsky.social/post/3mc7yjeuz4325Why can boosting product quality actually reduce a manufacturer's profits? Our findings show that when retailers control pricing, increasing demand strengthens the retailer's power, compelling manufacturers to give up more profit and optimally limit product quality. https://190researchblog.substack.com/p/products12 Jan 2026 12:00 +0000at://did:plc:7pfj5farikpmbasd5bba6uj5/app.bsky.feed.post/3mc7yjeuz4325https://bsky.app/profile/rationalitycrc.bsky.social/post/3mbofaqz5jz2rHow Germany’s historical high mobility fell short of its reputation: Our data reveals that intergenerational income persistence sharply increased for recent cohorts, reaching levels comparable to the US and coinciding with increasingly class-dependent educational attainment. https://190researchblog.substack.com/p/social-mobility05 Jan 2026 12:00 +0000at://did:plc:7pfj5farikpmbasd5bba6uj5/app.bsky.feed.post/3mbofaqz5jz2rhttps://bsky.app/profile/rationalitycrc.bsky.social/post/3mb4rxxuobs22How labor market resilience can fall short despite new skill demands: Our analysis shows that robot automation systematically increases training for new skills in service sectors but also speeds up the retirement of manufacturing workers. https://190researchblog.substack.com/p/training29 Dec 2025 12:00 +0000at://did:plc:7pfj5farikpmbasd5bba6uj5/app.bsky.feed.post/3mb4rxxuobs22https://bsky.app/profile/rationalitycrc.bsky.social/post/3mal6qaqxh52nHow costly data production can thwart price discrimination profits: We show that socially optimal market segmentation forces the seller into "indecisive segments", ensuring zero profit gain and showing that the private incentive to produce information is inefficient. https://190researchblog.substack.com/p/personalized-pricing22 Dec 2025 12:00 +0000at://did:plc:7pfj5farikpmbasd5bba6uj5/app.bsky.feed.post/3mal6qaqxh52nhttps://bsky.app/profile/rationalitycrc.bsky.social/post/3m7zo2u52f22oJoin us for the 2nd Berlin PhD Conference in Economics on July 6-8, 2026. [contains quote post or other embedded content]15 Dec 2025 12:46 +0000at://did:plc:7pfj5farikpmbasd5bba6uj5/app.bsky.feed.post/3m7zo2u52f22ohttps://bsky.app/profile/rationalitycrc.bsky.social/post/3m7zlhshfud2qHow information campaigns can fall short even if they successfully correct beliefs: Our experiments show that correcting consumers' large underestimations of which products cause high emissions does not have an effect on their actual consumption decisions. https://190researchblog.substack.com/p/co2-misunderstandings15 Dec 2025 12:00 +0000at://did:plc:7pfj5farikpmbasd5bba6uj5/app.bsky.feed.post/3m7zlhshfud2qhttps://bsky.app/profile/rationalitycrc.bsky.social/post/3m7hy6vvzw22jHow can AI overcome the scarcity of employee data that impedes its use in hiring? Our new field experiment shows that adding non-incentivized behavioral measures improves AI's productivity predictions and makes algorithmic hiring more efficient than even human managers. https://190researchblog.substack.com/p/improving-ai-hiring08 Dec 2025 12:00 +0000at://did:plc:7pfj5farikpmbasd5bba6uj5/app.bsky.feed.post/3m7hy6vvzw22jhttps://bsky.app/profile/rationalitycrc.bsky.social/post/3m6wewc27gl2hHow do elite families maintain their status over multiple generations? Using data from prewar Japan, we show that adoption expands the choice to a broader talent pool, increasing the probability of maintaining elite status in the son’s generation by 27%. https://190researchblog.substack.com/p/why-do-elite-families-remain-at-the01 Dec 2025 12:00 +0000at://did:plc:7pfj5farikpmbasd5bba6uj5/app.bsky.feed.post/3m6wewc27gl2h