Chair of Economics and
Information Systems

Overview

Academic Group

Economics and Regulation

Supporter

  • Deutsche Bundesbank
  • Deutsche Forschungsgemeinschaft (DFG)

Chairholder

Prof. Pierfrancesco La Mura, Ph.D.

Research Professor

Prof. Dr. André Casajus

Courses (Selection)

  • Economic Analysis and Policy
  • Financial Economics
  • Markets, Information and Incentives

Research Areas

  • Market design and regulation
  • Foundations of game and decision theory
  • Information theory

Network

  • New York University, Stern School of Business: Prof. Adam Brandenburger, Ph.D.
  • Complutense University of Madrid, Spain: Giannicola Scarpa, Ph.D.
  • Waseda University, Tokyo, Japan: Koji Yokote, Ph.D
  • Technical University Dortmund, Germany: Dr. Michael Kramm
  • European School of Management and Technology (ESMT), Berlin, Germany: Dr. Frank Huettner

All processes that are stable we shall predict.
All processes that are unstable we shall control.

Prof. Pierfrancesco La Mura, Ph.D.
Holder of the Chair of Economics and Information Systems
Read his profile

What we do

The Chair of Economics and Information Systems focuses its course offering and research activity on the role of information and decision-making in economics and business life. The research interests at the Chair span the business impact of the information economy, and of electronic platforms; the design and optimal regulation of market and non-market processes; the study of decision-making and strategic interactions.

Besides teaching and research the Chair is also actively engaged on industry projects, which typically focus on innovation at the interface of business and technology. In recent years, the Chair has supported national and international industry partners ranging from technology startups to large corporations and industry associations.

Courses

The Chair of Economics and Information Systems has been developing and integrating into its teaching offering novel digital education solutions for virtual participation in the classroom. This includes live streaming of all its courses and seminars, customized audio Q&A support and remote control, and virtual reality. Furthermore, the video recordings can integrate other course materials during exam preparation. The course offering aims to provide cross-disciplinary knowledge relevant to the complex challenges of tomorrow’s managers and entrepreneurs.

Research

Economic theory deals with rational decisions within and outside of markets and therefore provides a uniform language and methodology in many fields of business economics, from finance to strategic organizations. The recent emergence of computerized networks created exciting new opportunities for the design and commercial exploitation of novel digital technologies and business processes.

Reflecting this new reality, research focus at the department lies at the interface of economics and information sciences, and in particular on the foundations of decision theory and game theory, information theory, and agent-based artificial intelligence, the design of electronic markets, the estimation of consumer preferences, quantum information, social choice, and mathematical finance.
While the research focus of the Chair is theoretical, many of the results carry implications for various business fields, including market design, strategy, business intelligence, negotiation, finance, economic networks, regulation, and corporate governance.

Market Design and Regulation

  • Electronic markets
  • Energy markets
  • Mechanism design

Foundations of Game and Decision Theory

  • Representations
  • Solutions
  • Algorithms

Information Theory

  • Preference estimation
  • Quantum information
  • Artificial Intelligence

Current research projects

Deutsche Bundesbank Funds Research Project on ‘Hard’ and ‘Soft’ Quantum Effects in Financial Trade

In August 2017 Deutsche Bundesbank decided to support Prof. La Mura’s research at HHL by providing a three-year research grant of EUR 50.000 per year.
As a first topic, the project investigates the consequences of quantum-assisted trading on the stability of financial markets. Prof. La Mura, describing the work, writes: “Wide-area quantum networks are quickly approaching commercial availability, and with those will come novel opportunities and threats for high-frequency traders and market operators. In previous work we took a trader-centric perspective, and showed how the availability of quantum resources can impact trading performance in distributed scenarios. We now aim to understand, through formal modeling, the market consequences of quantum-assisted trading, particularly regarding the dynamics and stability of prices on different exchanges”.The second topic explores the occurrence and impact of classical, but quantum-like interference effects (e.g., regret and rejoice) in financial and market decisions. The aim is to provide a context-dependent decision framework for rational decision-making able to capture those effects in financial and economic modeling.
In the last year the above lines of research led to a U.S. patent (A. Brandenburger and P. La Mura, “Quantum-Assisted Load Balancing in Communication-Constrained Wide-Area Physical Networks”. U.S. Patent No. 10,056,983, August 21, 2018.), and two new publications.

DFG continues its funding for research at HHL

In 2018, Prof. Dr. Andre Casajus was again awarded a prestigious grant by the German Research Foundation (DFG). The grant will fully fund Prof. Casajus’ research activities over a period of three years (2018-2020). His current project on “Cooperative Games, Replicator Dynamics, and Stability” aims at building bridges between cooperative game theory and evolutionary game theory. Broadly speaking, cooperative game theory deals with the fair distribution of gains from cooperation. In evolutionary game theory, the rationality assumption on agents is waived and replaced by the idea of the “survival of the fittest” from evolutionary biology.