Assoc. Prof. Andreas Grunewald

Bounded Rationality and Belief Formation

Andreas Grunewald’s research lies at the intersection of behavioral economics, experimental economics, and applied microeconomic theory. His work focuses on how bounded rationality shapes strategic interactions among individuals, firms, and beliefs. When visiting CES, Mr. Grunewald will work on several recent projects that investigate belief formation in the presence of bounded rationality. The first project studies how limited memory affects search behavior in product and labor markets. One aspect of this project is to understand in what situations individuals revisit and buy products that they have looked at before. He will also work on a project that analyzes circumstances under which communication among like minded individuals and online information can lead to a proliferation of biases instead of an aggregation of information. This strand of his research seeks to identify environments and also interventions that improve individual’s processing of information in order to attenuate belief biases or even tendencies to form extreme beliefs.

Andreas Grunewald is an Assistant Professor of Microeconomics at the Department of Economics at Frankfurt School of Finance & Management. Before joining Frankfurt School he was a deputy professor at Goethe-University Frankfurt. He holds a PhD in Economics from the Bonn Graduate School of Economics. He is an IZA Research Fellow. His work has appeared in journals such as the Review of Economics Studies, the Review of Economics and Statistics, and the International Economic Review.