Welfare State is at the core of the Scandinavian societal model. As we move into a new century (well in the grand scheme of things), how should we adjust our understanding and implementation of the Welfare State? Microeconomic research has a lot to contribute on the question. Here are some of the issues (and associated sub fields of microeconomics) that microeconomic research can address.
In the 21st century, Internet and Information Technology (IT) have become unavoidable parts of our life. With the development of Internet and IT, the traditional ways of economic activities of our society have been gradually replaced by digital economy. In contrast to the traditional economy where most economic activities occur physically, the economic activities of our society in the age of digital economy take place mostly virtually, in digital form. Such change is taking place in almost all aspects of our society, influencing activities of public sectors, private sectors, communities, and individuals. Based on economic theories, the Microeconomic Research Group (MRG) studies a variety of problems within digital economy, touching different sectors and aspects of our society.
More on our research on this topic: DigitalEconomy
Decision under Uncertainty
No one foresaw the coming of COVID-19 and its consequences on life and economics. The stock market can enjoy a boom that makes people rich, while it can also suffer a crash that evaporates wealth. No one can say for sure that they will not run into a car accident during the next year, and many people purchase a lottery in order to get a chance of becoming rich overnight. In strategic alliances, firms can never be sure how their partners will act in various situations because they are likely to have diverging interests and expectations, and a majority of these expectations either cannot be put into a contract or cannot be verified at court.
All the above-mentioned events have something in common – they are all plagued by uncertainty. Indeed, the turbulent world makes our life full of uncertainty: hardly any big decision in our life leads to a sure outcome, neither does the strategy set by a firm or the policy set by the government. Because uncertainty is so prevalent in our social and economic lives, it is important to understand how to cope with them.
Using decision theory, game theory, human subject experiments, as well as empirical analysis, our group aims to understand how economic agents act in the presence of uncertainty.
More on our research on this topic: DecisionUnderUncertainty
More about our research
On top of the group focus research topics, the individual researchers work on different fields within microeconomic theory.