Decentralized markets (B04)

• Subject Area: Economic Policy, Applied Economics
• Term: since 2018
• Project identifier: Deutsche Forschungsgemeinschaft (DFG) - Project number 326731373

We analyze decentralized markets—such as labor markets, university admissions, online platforms, and illicit drug markets—where frictions arise from asymmetric information, search costs, and other market imperfections. Using theoretical and empirical methods, we study how instruments such as ratings, recommender systems, return rights, and regulatory actions like drug legalization can help mitigate these frictions. Our findings inform policies for efficient and equitable market regulation.

• DFG Programme: CRC/Transregios
• Subproject of: TRR 224: Economic Perspectives on Societal Challenges: Equality of Opportunity, Market Regulation, and Financial Stability
• Applicant Institution: Rheinische Friedrich-Wilhelms-Universität Bonn
• Project Heads: Professor Dr. Stephan Lauermann; Dr. Helena Perrone, from 1/2022 until 1/2025; Professor Dr. Sven Rady, until 12/2021; Professorin Michelle Sovinsky, Ph.D., since 1/2026; Professor Dr. Konrad Otto Stahl, until 12/2025; Professor Dr. Jonas von Wangenheim, since 1/2026