The research projects:
Prof. Sarah Auster: How does uncertainty affect the acquisition and dissemination of information?
"Our world is becoming more and more complex, risks increasingly difficult to assess. Therefore, it is often not possible to accurately predict the ultimate impact of important decisions. Yet they must be made—especially when it comes to climate change, global finances, or public health."
In her project, entitled “Information Economics with Fundamental Uncertainty: Robustness, Commitment, and Strategic Incentives (INFORM)” Professor Sarah Auster is studying how uncertainty influences the acquisition, processing and strategic dissemination of information.
“Whereas the traditional approach of information economics is primarily based on scenarios with clearly defined risks, I’m focusing on complex learning situations,” Professor Auster explains, “such as clinical trials of new medical treatments and A/B testing in digital markets, a method for optimizing electronic platforms.” In addition, the project will analyze how strategic incentives to share information change when potential recipients have only a partial picture of the possible sources of information to which other parties have access.
Sarah Auster is set to receive an ERC Starting Grant worth €1.5 million in funding for INFORM over the next five years, giving her “the freedom to concentrate squarely on research.”
Dr. Tomáš Jagelka: Focusing on Inequality
Which personal attributes are important for a good life? Which individual preferences and abilities promote positive living conditions? Economist Dr. Tomáš Jagelka is investigating these questions in his "FELICITAS" project, which is funded by the ERC with 1.5 million euros. He will investigate which personal characteristics are important in order to be successful in different areas of life.
On the one hand, "FELICITAS" focuses on the family: how do people value having a partner, being married, having children? This is particularly interesting against the backdrop of falling birth rates in the EU. For example, the project will help to understand people’s fertility preferences and the resources needed to affect their decision to have children. On the other hand, Dr. Tomáš Jagelka is investigating the value that people attribute to a stable social network. This may enable us to quantify the costs of social isolation, a problem brought to the spotlight during the Covid pandemic. Another point: ageing societies in the EU. "I want to understand how much income people would be willing to give up in order to be able to extend their lives. What life conditions do people prefer as they age and how much would they be willing to pay to avoid diseases such as cancer or Alzheimer’s?" These results could be used to adapt healthcare policy and medical research priorities accordingly.
"The ERC grant gives me the means to collect experimental data, set up my own research team, and devote as much time as possible to research," says Dr. Jagelka. It also gives him the opportunity to disseminate his newly acquired knowledge at conferences and workshops and to work personally with co-authors at various institutions.