Prof. Dr. Paul Heidhues


Professor of Behavioral and Competition Economics

Düsseldorf Institute for Competition Economics (DICE)
Heinrich-Heine-Universität Düsseldorf
Universitätsstr. 1
40225 Düsseldorf

Building: 24.31
Tel. +49 211 81 10244 


Educational Background


Habilitation, Humboldt University of Berlin, Berlin, Germany


Ph.D. in Economics, Rice University, Houston, Texas, USA    


Masters in Economics, The Australian National University, Canberra, Australien    


Since 10/2016

Düsseldorf Institute for Competition Economics (D.I.C.E.), Professor of Behavioral and Competition Economics

2010 - 2016

Lufthansa Chair in Competition and Regulation, Professor of Economics,  ESMT, Berlin, Germany


Visiting Scholar, Dartmouth, Hanover, USA

2005 - 2010

Associate Professor, Universität Bonn, Bonn, Germany

2009 - 2010

Visiting Scholar, University of California, Berkeley, USA


Visiting Associate Professor, Universität Bonn, Bonn, Germany

1999 - 2005

Research Fellow, Social Science Research Center Berlin (WZB), Berlin, Germany

Spring 2003

Visiting Scholar, Massachusetts Institute of Technology, Cambridge, USA

Fall 2002

Visiting Faculty, University of Pittsburgh, Pittsburgh, Pennsylvania, USA

1998 - 1999

Junior Research Fellow, Social Science Research Center Berlin (WZB), Berlin, Germany

Representative Publications

  • Heidhues, P. & B. Kőszegi, "Naivete-based discrimination", forthcoming in: Quarterly Journal of Economics.

  • Heidhues, P., B. Kőszegi & T. Murooka, "Inferior products and profitable deception", forthcoming in: Review of Economic Studies.
  • Heidhues, P., S. Rady & P. Strack, "Strategic experimentation with private payoffs", Journal of Economic Theory 159(5), 2015, 531–551.

  • Heidhues, P. & B. Kőszegi, "Regular prices and sales", Theoretical Economics 9(1), 2014, 217–251.
  • Dufwenberg, M., P. Heidhues, G. Kirchsteiger, F. Riedel & J. Sobel, "Other-regarding preferences in general equilibrium", Review of Economic Studies 78(2), 2011, 613–639.
  • Heidhues, P. & B. Kőszegi, "Exploiting naivete about self-control in the credit market", American Economic Review 100(5), 2010, 2279–2303.
  • Heidhues, P. & B. Kőszegi, "Competition and price variation when consumers are loss averse", American Economic Review 98(4), 2008, 1245–1268.

Research Interests

  • (Behavioral) Industrial Organisation
  • Behavioral Economics
  • Competition and Consumer Policy
  • (Applied) Game Theory


Paul worked on numerous topics in Industrial Organization and Competition Policy such as input-market bargaining power, merger control, and collusion. More recently, much of his work focuses on the functioning of markets when consumers are partly driven by psychological factors – such as social preferences, loss aversion, time-inconsistency, or naivete – that the classic consumer model abstracts from. Among other things, he has written on how firms optimally price products and design credit contracts in response to consumers' psychological tendencies, and he has investigated the implications of various consumer mistakes for the functioning of markets and for consumer-protection regulation. 

Paul is a member of the Academic Panel of the Competition and Markets Authority of the UK, a member of the Arbeitskreis Kartellrecht of the German Antitrust Authority (Bundeskartellamt), a Research Fellow of the CEPR Programme in Industrial Organization, a Research Fellow of the CESifo Network in Behavioral Economics, and an elected member of the Industrieökonomischer Ausschuss as well as the Theoretischer Ausschuss of the Verein für Socialpolitik. His work appeared in leading academic journals such as the American Economic Reviewthe Quarterly Journal of Economics, and the Review of Economic Studies.

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