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CRC Rationality & Competition

@rationalitycrc.bsky.social
713 followers 865 following 248 posts

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: rationality-and-competition.de

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CRC Rationality & Competition @rationalitycrc.bsky.social · 28/09/2026
How government wealth transfers can backfire on the politicians who enact them: Our new study of the 1934 Taylor Grazing Act shows that giving ranchers secure property rights on public land made them richer- prompting them to turn against the Democrats who enriched them.
190researchblog.substack.com
When a Government Transfer Makes Its Supporters Leave
Bühler & Schäfer “Wealth Transfers Erode the Coalition That Enacted Them: Evidence from the Taylor Grazing Act“ Journal of Historical Political Economy 2026
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CRC Rationality & Competition @rationalitycrc.bsky.social · 21/09/2026
Why more business districts don't equal stronger urban centers: Our new global analysis demonstrates that as the number of commercial hubs within a city increases, their collective share of total employment actually falls.
190researchblog.substack.com
Where the Services Are: Mapping the Ultra-Dense Core of the Modern City
Ahlfeldt, Albers & Behrens: “Prime Locations” Insights 2026, 8(3)
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CRC Rationality & Competition @rationalitycrc.bsky.social · 17/09/2026
Is China a "Paper Tiger" regarding scientific quality? Our investigation into citation home bias revealed China exhibits the largest bias globally, demonstrating that its seeming rise in citation rankings is overstated. Now published in "Journal of International Economics".
190researchblog.substack.com
Reassessing scientific dominance: How China’s citation home bias inflates its ranking
Qiu, Steinwender & Azoulay: "Paper tiger? Chinese science and home bias in citations" Journal of International Economics Volume 157
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Reposted by CRC Rationality & Competition
CESifo @cesifo.org · 16/09/2026
We are very much looking forward to hosting the 3rd International Seminar on Trade together with the ifo Institute and @lmu.de in Munich!
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CRC Rationality & Competition @rationalitycrc.bsky.social · 16/09/2026
How do elite families maintain their status over multiple generations? Using data from prewar Japan, we showed that adoption expands the choice to a broader talent pool, increasing the probability of maintaining elite status. Now published in "Economic History Review".
190researchblog.substack.com
Why do elite families remain at the top generation after generation?
Kumanomido, Takayasu: "Elite Persistence in Family: The Role of Adoption in Prewar Japan" CRC Discussion Paper No. 537
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CRC Rationality & Competition @rationalitycrc.bsky.social · 15/09/2026
Unclear product details or mixed user reviews aren't always bad. Our study showed that ambiguous product information can prompt sellers to drop prices for cautious shoppers or boost revenue when buyers feel optimistic. Now published in "Theoretical Economics".
190researchblog.substack.com
Benefits and Challenges of Ambiguous Product Information
Lang & Wasser "Benefits and Challenges of Ambiguous Product Information" CRC Discussion Paper No. 564
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CRC Rationality & Competition @rationalitycrc.bsky.social · 14/09/2026
Why information campaigns fail: We showed that correcting consumers beliefs about which products cause high emissions does not have an effect on their consumption decisions. Now published in the Journal of the Association of Environmental and Resource Economists.
190researchblog.substack.com
Correcting misunderstandings about CO2 emissions doesn’t help to fight climate change
Imai, Pace, Schwardmann & van der Weele "Correcting Consumer Misperceptions About CO2 Emissions" CRC Discussion Paper No. 529
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CRC Rationality & Competition @rationalitycrc.bsky.social · 11/09/2026
Last week marked 50 weeks of the CRC TRR 190 Coffee Break Blog! To celebrate, throughout next week, we will highlight some of our discussion papers, which have been published since we featured them on our blog. Thanks for reading everyone and to the next 50 weeks!
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CRC Rationality & Competition @rationalitycrc.bsky.social · 07/09/2026
Why one analysis isn’t the full story: A re-check of 100 studies reveals that only 34% of original results held up across different expert choices. So, even with identical data, different "justifiable" analytical paths often lead to different scientific conclusions.
190researchblog.substack.com
CRC TRR 190 Coffee Break ☕ | Substack
CRC TRR 190 Coffee Break ☕ is the research blog of Collaborative Research Center Transregio “Rationality and Competition,” a joint venture of researchers from Berlin and Munich, funded by DFG. Click to read CRC TRR 190 Coffee Break ☕, a Substack publication. Launched 10 months ago.
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CRC Rationality & Competition @rationalitycrc.bsky.social · 31/08/2026
How certification can fall short in spite of perfect honesty: Our research shows that expert gatekeepers reveal every secret a seller is hiding while deliberately avoiding new data investigations just to keep a bigger slice of the profit for themselves.
190researchblog.substack.com
CRC TRR 190 Coffee Break ☕ | Substack
CRC TRR 190 Coffee Break ☕ is the research blog of Collaborative Research Center Transregio “Rationality and Competition,” a joint venture of researchers from Berlin and Munich, funded by DFG. Click to read CRC TRR 190 Coffee Break ☕, a Substack publication. Launched 10 months ago.
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CRC Rationality & Competition @rationalitycrc.bsky.social · 24/08/2026
Why central bank actions don’t always work as predicted: A new study shows that rising interest rates cause people to cut their spending and borrowing much more than an equal drop in inflation, even though both should technically affect our wallets the same way.
190researchblog.substack.com
Why Households Respond More to Nominal Interest Than Inflation
Bosch-Rosa, Heinemann, Massenot & Meissner: "Different Consumption Responses to Equivalent Changes in the Real Interest Rate" CRC Discussion Paper No. 578
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CRC Rationality & Competition @rationalitycrc.bsky.social · 17/08/2026
How the shipping container made global trade more efficient but also more political: We show that while focusing trade in a few giant ports makes shipping cheaper for everyone, it also gives the governments who own those ports a powerful way to influence other countries.
190researchblog.substack.com
The New Gatekeepers: How Chinese State Ownership and Strategic Infrastructure Reshape Maritime Power
Réka Juhász et al.: "Ports, Technology and Inter-City Trade: The Economics and Geopolitics of Evolving Maritime Transport Networks" CRC Discussion Paper No. 579
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CRC Rationality & Competition @rationalitycrc.bsky.social · 10/08/2026
Why talking to political rivals is better for social cohesion than for information sharing: Our experiment shows that while face-to-face conversations durably reduce polarization, deep-seated distrust prevents us from learning, even when the other side has more to teach.
190researchblog.substack.com
Talking Across the Aisle: What a Conversation with the Other Side Can (and Cannot) Fix
Braghieri, Schwardmann & Tripodi:"Talking Across the Aisle" CRC Discussion Paper No. 575
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CRC Rationality & Competition @rationalitycrc.bsky.social · 03/08/2026
How eco-friendly markets can accidentally increase pollution: Our research shows that without enough environmentally-conscious buyers, creating separate "green" markets can backfire by pushing regular consumers toward more harmful products.
190researchblog.substack.com
When Green Markets Backfire
Herweg, Köszegi & Schmidt "Some Simple Economics of Green Markets" CRC Discussion Paper No. 572
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CRC Rationality & Competition @rationalitycrc.bsky.social · 27/07/2026
Why are new homes being built in danger zones? Cheap insurance and strict building rules in safe neighbourhoods are forcing development toward the wildfire fringe, but allowing more housing in safe areas can help lower the financial burden on workers.
190researchblog.substack.com
Building in Harm’s Way: How Institutional Distortions Shape Wildfire Risk in San Diego
Ospital: "Housing Supply, Property Insurance, and Exposure to Wildfire Risk" CRC Discussion Paper No. 571
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CRC Rationality & Competition @rationalitycrc.bsky.social · 20/07/2026
How transport subsidies fall short as climate policy: Germany’s 9-Euro Ticket boosted rail travel by 35% but cost €6,140/tCO2 due to minimal car-to-rail substitution. Though an efficient cost-of-living transfer, the passenger surge triggered a 30% surge in train delays.
190researchblog.substack.com
Welfare vs. Climate: Lessons from Germany’s 9-Euro Ticket
Wichert et al.: "Almost fare free: Impact of a cheap public transport ticket on mobility patterns and train delays" Journal of Public Economics 258 (2026)
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CRC Rationality & Competition @rationalitycrc.bsky.social · 13/07/2026
How private interest drives the public good: Our study shows that the 1866 cholera epidemic induced a 35% increase in waterworks investments by industrial elites fearing labor scarcity, proving that economic incentives can catalyze transformative public health reforms.
190researchblog.substack.com
Private Interest in the Public Good: Cholera and the Origins of Sanitary Reform
Gallardo-Albarrán & Kappner: "Private Interest in the Public Good: Cholera and the Origins of Sanitary Reform" CRC Discussion Paper No. 573
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CRC Rationality & Competition @rationalitycrc.bsky.social · 06/07/2026
How media content shapes democracy: Our study of early Canadian TV shows that nationalised news erodes voter turnout and local accountability, while local programming preserves the vital link between citizens and their representatives.
190researchblog.substack.com
National Content, Local Consequences: How the Geographic Orientation of Media Shapes Political Accountability
Bühler & Dickens: "National content and local political consequences: Evidence from public and private television" Journal of Public Economics, Volume 259 (2026)
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CRC Rationality & Competition @rationalitycrc.bsky.social · 04/07/2026
This is not just another summer workshop in Berlin, but actually TWO conferences! The 2nd Berlin PhD Conference consists of an Applied Micro part and a part on micro theory and behavioral economics: sites.google.com/vie... Keynotes by Esmée Zwiers, Simon Jäger, Jeanne Hagenbach, and Botond Köszegi.
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CRC Rationality & Competition @rationalitycrc.bsky.social · 29/06/2026
How a country can survive its currency value doubling overnight: Our study of the 1985 Plaza Accord shows that Japan avoided a jobs crisis by leaning on its "jobs-for-life" culture and moving production to Asia, even as it began a shift from manufacturing to services.
190researchblog.substack.com
How Rigid Labor Markets Shaped Japan’s Response to the Plaza Accord
Kumanomido: "Exchange Rate Appreciation and Structural Adjustment: Evidence from the Plaza Accord" CRC Discussion Paper No. 567
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Reposted by CRC Rationality & Competition
Vincent Meisner @vincentmeisner.bsky.social · 26/06/2026
Great stuff happening in Berlin! Look at our market design workshop at @wzb.bsky.social ! @rationalitycrc.bsky.social
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CRC Rationality & Competition @rationalitycrc.bsky.social · 22/06/2026
Why newly enfranchised women voted against the parties that secured their rights: We reveal that religious "identity payoffs" outweighed material self-interest, proving that cultural identities can decouple political choice from economic incentives even when stakes are high.
190researchblog.substack.com
Female Enfranchisement and the Conservative Voting Gap
Bühler & Sabet "Female enfranchisement and the conservative voting gap: Evidence from gender-separated precinct returns" European Journal of Political Economy (2026)
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CRC Rationality & Competition @rationalitycrc.bsky.social · 19/06/2026
Why searching for a "better deal" yields diminishing returns: David Ronayne and David P. Myatt prove that sampling without replacement exhibits decreasing returns, where the expected benefit of each additional search systematically declines regardless of the population.
190researchblog.substack.com
New Insights into Sampling Without Replacement
Myatt & Ronayne: "Decreasing returns to sampling without replacement" Economics Letters, Volume 264 (2026)
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CRC Rationality & Competition @rationalitycrc.bsky.social · 18/06/2026
Why specialists give proprietary data to big-tech rivals for free: David Ronayne and colleague's model shows that sharing data strategically induces "coopetition," softening competition but potentially harming consumers through lower innovation.
190researchblog.substack.com
Why Specialist Firms Willingly Give Their Data to Big-Tech Rivals
Bhargava, Dubus, Ronayne & Shekhar: "The Strategic Value of Data Sharing in Interdependent Markets" Management Science, Volume 72 (2025)
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CRC Rationality & Competition @rationalitycrc.bsky.social · 17/06/2026
Why identical products maintain persistent price differences: David Ronayne and David P. Myatt demonstrate how the threat of rapid "special deals" stabilizes price dispersion, with the most captive firms setting the highest prices.
190researchblog.substack.com
Stable Price Dispersion: A New Framework for Persistent Price Heterogeneity
Myatt & Ronayne: "Stable Price Dispersion under Heterogeneous Buyer Consideration" RAND Journal of Economics, Volume 57 (2026)
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CRC Rationality & Competition @rationalitycrc.bsky.social · 16/06/2026
How the "law of one price" fails in asymmetric competition: David Ronayne and David P. Myatt show that vanishing customer loyalty induces a "law of monopoly pricing" where most firms charge the maximum price while one leader anchors the market at the second-lowest cost.
190researchblog.substack.com
Revisiting Bertrand Competition with Captive Customers
Myatt & Ronayne: "Bertrand competition and captive customers" Economics Letters, Volume 257 (December 2025)
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CRC Rationality & Competition @rationalitycrc.bsky.social · 15/06/2026
When price competition is more than a simple "tango": David Ronayne and David P. Myatt show how cost differences create a "thrango" of multiple firms using randomized sales. Innovation drives even similar companies toward unique, unpredictable pricing strategies.
190researchblog.substack.com
Ronayne Week Day #1: How Cost Asymmetry Reshapes Competitive Sales
Myatt & Ronayne: "Asymmetric Models of Sales" American Economic Journal: Microeconomics, Volume 18 (2026)
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CRC Rationality & Competition @rationalitycrc.bsky.social · 12/06/2026
CRC Coffee Break Special Issue: To celebrate the recent publication of five papers by CRC member David Ronayne, we are announcing the "David Ronayne Week" on our blog! Next week, we will publish one blogpost a day, each exploring one of the new papers.
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CRC Rationality & Competition @rationalitycrc.bsky.social · 08/06/2026
How ancient history shapes economic decision-making: Our 116-country study reveals that ancestral distance systematically drives preference heterogeneity, showing that modern risk and time preferences are rooted in cultural patterns transmitted over thousands of years.
190researchblog.substack.com
The Cultural Geography of Choice: Global Variation in Risk and Time Preferences
Becker et. al: "The Global Variation in Risk and Time Preferences" CRC Discussion Paper No. 568
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CRC Rationality & Competition @rationalitycrc.bsky.social · 01/06/2026
Why cash makes us more selfish: Our new experiment shows that knowing the real-world dollar value of earnings triggers more self-serving judgements than abstract points or tokens, even when the actual split remains exactly the same.
190researchblog.substack.com
How Monetary Stakes Reframe Fairness Perceptions
Chugunova & Luhan: "A matter of principle or a matter of money? How fairness evaluations change with experimental currencies" PLoS One 21(2) (2026)
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CRC Rationality & Competition @rationalitycrc.bsky.social · 25/05/2026
How students leverage self-delusion to beat procrastination: Our new field study shows that university students strategically inflate their believed returns to effort by 20% as exams approach, proving that biased beliefs function as an instrumental tool for self-control.
190researchblog.substack.com
Strategic Self-Delusion: How Students Manage Beliefs to Overcome Present Bias
Bönisch, König, Schweighofer-Kodritsch & Weizsäcker "Beliefs as a means of self-control? Evidence from a dynamic student survey" Journal of Economic Dynamics & Control 184 (2026)
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CRC Rationality & Competition @rationalitycrc.bsky.social · 21/05/2026
Yesterday, we concluded our 18th CRC Retreat in Schwanenwerder. Three wonderful days of reseach collaboration and scientific exchange.
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CRC Rationality & Competition @rationalitycrc.bsky.social · 18/05/2026
Why labor markets underprovide benefits despite high worker demand: Our model shows that treating benefits as hidden "experience goods" systematically induces inefficiently low coverage and compressed wage gaps, masking the true extent of compensation inequality.
190researchblog.substack.com
Why Labor Markets May Underprovide Benefits
Sulka: "Providing Benefits to Uninformed Workers" CRC Discussion Paper No. 566
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CRC Rationality & Competition @rationalitycrc.bsky.social · 11/05/2026
How 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.
190researchblog.substack.com
How state ownership biases government support
Schmidt, Tafti & Mang: "State ownership biases government support—evidence from the financial crisis" The Journal of Law, Economics, and Organization, 2026, Vol. 00
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CRC Rationality & Competition @rationalitycrc.bsky.social · 04/05/2026
How "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.
190researchblog.substack.com
The Power of the Badge: Platform Endorsement in Online Retail
Lill, Gallitz, Stich & Spann: "How Platform Endorsement Shapes Consumer Search and Choice in Online Retail" CRC Discussion Paper No. 569
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CRC Rationality & Competition @rationalitycrc.bsky.social · 27/04/2026
Why 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.
190researchblog.substack.com
Do We Need Complex Incentives for Belief Elicitation Online?
Banko-Ferran, Burdea & Woon: "A Horserace of Methods for Eliciting Induced Beliefs Online" CRC Discussion Paper No. 562
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CRC Rationality & Competition @rationalitycrc.bsky.social · 20/04/2026
How 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.
190researchblog.substack.com
Benefits and Challenges of Ambiguous Product Information
Lang & Wasser "Benefits and Challenges of Ambiguous Product Information" CRC Discussion Paper No. 564
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CRC Rationality & Competition @rationalitycrc.bsky.social · 13/04/2026
How 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.
190researchblog.substack.com
Why Intangibles Matter for the Effectiveness of Structured Management
Englmaier et. al: "Management Practices and Firm Performance During the Great Recession" CRC Discussion Paper No. 548
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CRC Rationality & Competition @rationalitycrc.bsky.social · 06/04/2026
Why 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.
190researchblog.substack.com
Why Urban Productivity Premiums Are Up to 50% Larger Than Previously Estimated
Ahlfeldt, Heblich, Seidel & Yin: "The Price of Productivity" CRC Discussion Paper No. 563
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CRC Rationality & Competition @rationalitycrc.bsky.social · 30/03/2026
How 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.
190researchblog.substack.com
How to Design Mystery Products That Work
Elgayar, Guhl, Stich & Spann: "Designed Uncertainty in Mystery Products" CRC Discussion Paper No. 565
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CRC Rationality & Competition @rationalitycrc.bsky.social · 23/03/2026
How 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.
190researchblog.substack.com
Why the Gender Pay Gap Is Wider Than It Looks for Low-Earners
Batbayar et. al: "Quantile Selection in the Gender Pay Gap" CRC Discussion Paper No. 560
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CRC Rationality & Competition @rationalitycrc.bsky.social · 16/03/2026
Why 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.
190researchblog.substack.com
Why Market Forces Alone Undersupply Distinctive Architecture
Ahlfeldt, Pietrostefani & Zhang: "The Economics of Architecture" CRC Discussion Paper No. 561
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CRC Rationality & Competition @rationalitycrc.bsky.social · 09/03/2026
How 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.
190researchblog.substack.com
How Unrestricted AI Tutoring Enhances Student Learning
Fischer, Rau & Rilke: "AI Tutoring Enhances Student Learning Without Crowding Out Reading Effort" CRC Discussion Paper No. 557
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CRC Rationality & Competition @rationalitycrc.bsky.social · 02/03/2026
How 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.
190researchblog.substack.com
The Cost of Captured Attention: Experimental Evidence on App Design, User Agency and Developer Responsibility
Timko, Adena: "The Impact of Behavioral Design and Users’ Choice on Smartphone App Usage and Willingness to Pay: A Framed Field Experiment" European Economic Review, Volume 183
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CRC Rationality & Competition @rationalitycrc.bsky.social · 23/02/2026
How 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.
190researchblog.substack.com
The Market Prices Disasters as 1‑in‑8 (Even If History Says 1‑in‑60)
Meyerheim: "Rare Disasters, Tail Aversion, and Asset Pricing Puzzles" CRC Discussion Paper No. 549
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CRC Rationality & Competition @rationalitycrc.bsky.social · 16/02/2026
How 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.
190researchblog.substack.com
Who Uses Artificial Intelligence in Research – And for What?
Chugunova et. al: "Who uses AI in research, and for what? Large-scale survey evidence from Germany" Research Policy, Volume 55 (2026)
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CRC Rationality & Competition @rationalitycrc.bsky.social · 09/02/2026
Why 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.
190researchblog.substack.com
The Earnings Gap Isn’t a Skill Gap: Labor Market Skills Don’t Explain the “Child Penalty”
Jessen, Kinne & Battisti: "Child penalties in labour market skills" European Economic Review, Volume 184 (2026)
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Reposted by CRC Rationality & Competition
CESifo @cesifo.org · 06/02/2026
📢 The Call for Papers for the 𝗖𝗘𝗦𝗶𝗳𝗼 𝗔𝗿𝗲𝗮 𝗖𝗼𝗻𝗳𝗲𝗿𝗲𝗻𝗰𝗲 𝗕𝗲𝗵𝗮𝘃𝗶𝗼𝗿𝗮𝗹 𝗘𝗰𝗼𝗻𝗼𝗺𝗶𝗰𝘀, organized by @klaus-m-schmidt.bsky.social & Ernst Fehr is now open! Keynotes: Supreet Kaur & @philippstrack.bsky.social 📆 𝟮𝟯 - 𝟮𝟰 𝗢𝗰𝘁𝗼𝗯𝗲𝗿 𝟮𝟬𝟮𝟲 ℹ️https://www.ifo.de/cesifo/f9G In cooperation with @rationalitycrc.bsky.social
Call for Papers Behavioral Economics
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CRC Rationality & Competition @rationalitycrc.bsky.social · 02/02/2026
How 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.
190researchblog.substack.com
Luck or Effort: Information on Educational Inequality shifts Perceptions, but not Policy Demand
Grewenig, Wedel & Werner: "Luck Or Effort: Perceptions of the Role of Circumstances in Education and Demand for Targeted Spending" CRC Discussion Paper No. 543
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Reposted by CRC Rationality & Competition
Berlin School of Economics @bsoeberlin.bsky.social · 23/01/2026
📣 Call for Papers - EXTENSION OF DEADLINE Join us for the 2nd Berlin PhD Conference in Economics in July. 🗓 July 6-8, 2026 ⏰ Application deadline: 30 January 2026 🔗 Learn more & apply: berlinschoolofeconomics.de/event-detail... #phdconference #callforpapers @rationalitycrc.bsky.social
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