Building genuine (decision-making) behaviour into economic models

Economists endeavour to emulate the behaviour of actors in economic contexts in order to calculate the consequences. The difficulty is this: Many at times restrictive assumptions concerning the behaviour of actors do not reflect the real world. A new project funded by the Anniversary Fund of the OeNB (Oesterreichische Nationalbank) aims to get a better grasp on reality.

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A numbers person who models behaviour


Stephan Leitner realized at an early stage that he is a numbers person among the business and economics specialists, someone who feels more comfortable with the quantitative subjects than with the “softer” subjects. Today, following his recent habilitation, the newly minted associate professor pursues his research at the Department of Management Control and Strategic Management, where he is working on models that calculate the decision-making behaviour in companies as well as the effects of decisions, taking into account the behavioural sciences.

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Customers who pay for their purchases by card are less likely to remember the precise amount paid

The transparency of spending money depends on the mode of payment used: cash, single-function cards that offer only a payment function, or multifunctional cards which may also include bonus programmes, user identification or other functions. A recent study has shown that the recall accuracy associated with the act of paying is lower for both card formats than it is for cash transactions.

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Financial compensation: Handwritten messages & banknotes are better received

Money is money: so why should we care how it is given? A new study on complaint handling, recently published in the renowned Journal of Service Research, delivers fresh insights: People who complain react differently, depending on how the financial compensation is presented.

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