Behavior, Incentives and Economic Design

Behavior, Incentives, and Economic Design (BIED) is an interdisciplinary research group that investigates how individual preferences and beliefs form and determine behavior, and how individuals respond to incentives. The group members combine economic theory, natural occurring data, and economic experiments to understand the functioning of various markets, and to investigate the efficiency of policy. The group focuses on a range of themes, for instance the role of memory and expectations for the economy, the role of non-financial incentives and social norms for public policy, models of learning and decisions under uncertainty, and the design of resource allocation mechanisms.  




Luigi Butera

Lars Peter Østerdal

Karol Szwagrzak

Peter Bogetoft 


External funding 


The group regularly attracts national and international public and private funding. Below a list of the current grants: 


  1. The science of funding science (Luigi Butera, 1.1M DKK), Alfred Sloan Foundation 
  2. The role of expectations for the economy (Luigi Butera, 4.6M DKK), DFF
  3. Institute for Behavioral Economics (Luigi Butera, 400k DKK), CBS
  4. Research programme on working environment economics (Lars Peter Østerdal, 973k DKK (CBS part)), The National Research Centre for the Working Environment (NFA). 
  5. Big Theory for Big Data: Theoretical Foundations of Data Aggregation Methods, DFF-Forskningsprojekt-1 (9038-00058A), July 2019 - July 2022, DKK 1.577.472
  6. Benchmarking-based incentives and regulatory applications (Peter Bogetoft),  Danish Research Council.




  1. Behavioral Economics (Master in Advanced Economics and Science) 
  2. Applied Microeconomics (Bachelor in International Business and Politics) 
  3. Contract, Agency, and Game Theory (MSc in Advanced Economics and Finance)
  4. Microeconomics (BSc in Business Administration and Mathematical Business Economics).
  5. Advanced Microeconomics (PhD course in Economics)
  6. Microeconomics (BSc in International Business and BSc International Shipping and Trade)


Publications and R&R (since 2018)

“A New Mechanism to Alleviate the Crises of Confidence in Science-With An Application to the Public Goods Game” (Luigi Butera, Philip Grossman, Daniel Houser, John List and Marie Claire Villeval). NBER wp No. w26801. R&R at Journal of the European Economic Association

“Measuring the Welfare Effects of Shame and Pride” (Luigi Butera, Robert Metcalfe, William Morrison, and Dmitry Taubinsky). American Economic Review, 112.1 (2022): 122-68

“Endogenous Testosterone is Associated with Increased Striatal Response to Audience Effects during Moral Choices” ( Yansong Li, Jean Claude Dreher, Elise Metereau, Luigi Butera Ignatio Obeso, and Marie-Claire Villeval). Psychoneuroendocrinology, 122 (2020): 104872

“Give Less but Give Smart: Experimental Evidence on the Effects of Public Information about Quality on Giving” (Luigi Butera, Jeffrey Horn). Journal of Economic Behavior & Organization, 171 (2020): 59-76

“Neurocomputational mechanisms at play when weighing concerns for extrinsic rewards, moral val- ues and social image” ( Jean Claude Dreher, Luigi Butera, Elise Metereau, Marie-Claire Villeval, and Chen Qu). PLOS Biology, 17.6 (2019): e3000283

“Delegating Altruism: Toward an Understanding of Agency in Charitable Giving” (Luigi Butera,  Daniel Houser). Journal of Economic Behavior & Organization , 155 (2018): 99-109

“Altruistic Punishment in Elections” (Luigi Butera,  Jason Aimone, and Thomas Stratmann). European Journal of Political Economy, 53 (2018): 149-160

Moreno-Ternero JD, Platz TT, Østerdal LP (2022). QALYs, DALYs, and HALYs: A Unifying Framework for the Evaluation of Population Health. Journal of Health Economics, In Press. 

Hougaard JL, Moreno-Ternero JD, Østerdal LP. Optimal Management of Evolving Hierarchies. Management Science 68, 8, 6024-6038, 2022. 

Moreno-Ternero JD, Østerdal LP. Entitlements to Continued Life and the Evaluation of Population Health. Review of Economic Design, available online.

Hussain MA, Siersbæk N, Østerdal LP. Multidimensional Welfare Comparisons of EU Member States Before, During, and After the Financial Crisis: A Dominance Approach. Social Choice and Welfare 55, 645-686, 2020. 

Platz TT, Siersbæk N, Østerdal LP. Ethically Acceptable Compensation for Living Donations of Organs, Tissues and Cells: An Unexploited Potential? Applied Health Economics and Health Policy 17, 1-14, 2019. 

Range TM, Østerdal LP. First-order dominance: stronger characterization and a bivariate checking algorithm. Mathematical Programming 173, 193-219, 2019. 

Gottschalk T, Range TM, Sudhölter P, Østerdal LP. Decomposing bivariate dominance for social welfare comparisons. Mathematical Social Sciences 95, 1-8, 2018.

Karol Flores-Szwagrzak, Jaume García-Segarra, Miguel Ginés-Vilar. “Priority and proportionality in bankruptcy,” Social Choice and Welfare, 2019, Vol. 54, pp. 559–579 doi:10.1007/s00355-019-01219-0

Karol Flores-Szwagrzak and Rafael Treibich. “Teamwork and individual productivity,” Management Science, Vol 66., No. 6, pp. 2523–2544

Distinguishing useful and wasteful slack, Operations Research, 2022. (Peter Bogetoft)

Mix Stickiness under Asymmetric Cost Information, Management Science, 2019. (Peter Bogetoft)




The page was last edited by: Department of Economics // 09/29/2023