Klaus Schmidt

Professor Klaus Schmidt is affiliated with LMU Munich (Department of Economic Theory) and part of the CESifo Research Network. He co-leads the Behavioral Economics research area, focusing on the interplay between social preferences, bounded rationality, and economic decision-making in markets, contracts, and institutions.

• Fields of Interest: Behavioral Economics, Microeconomics, Game Theory, Corporate Finance, Industrial Organization, Contract Theory, Decision-Making Under Uncertainty

His research bridges traditional microeconomic theory with behavioral insights, examining how psychological biases and social norms influence market outcomes, contract design, and resource allocation. Key themes include fairness, loss aversion, reciprocity, and strategic renegotiation inefficiencies. Collaborative works with scholars like Ernst Fehr, Fabian Herweg, and Martin Spann highlight applications in auctions, pricing strategies, and employment relations.

Analysis of his publications reveals a focus on contract theory (e.g., renegotiation inefficiencies, ownership rights) and behavioral applications in monopolistic/competitive markets. His interdisciplinary approach integrates insights from economics, psychology, and finance.