Incentive Design

Innovation can be shaped through carefully designed incentives, including prizes, advance market commitments, pay-for-outcomes procurement, and funding of research and development.

We study approaches for improving the alignment incentives for innovation for firms with what is most beneficial for social welfare. Such “market shaping” approaches include governments or philanthropists paying for outcomes, advance market commitments, and income sharing agreements where workforce training programs are paid based on the improvement in worker income. Our work on measurement is integrally connected to the success of market shaping, since reliable measures of relevant outcomes are essential to ensure that firm payments are aligned with societal goals.

Project Abstracts

Read about a few of the research projects the lab is currently working on.

Academic Publications

Publication Search
Working Paper

Service Quality on Online Platforms: Empirical Evidence about Driving Quality at Uber

Susan Athey, Juan Camilo Castillo, Bharat Chandar
October2024
Working Paper

Emotion- Versus Reasoning-Based Drivers of Misinformation Sharing: A Field Experiment Using Text Message Courses in Kenya

Susan Athey, Matias Cersosimo, Kristine Koutout, Zelin Li
November2022
Book Chapter

Platform Annexation

Susan Athey, Fiona Scott Morton
Antitrust Law Journal Vol. 84, Issue 3 American Bar Association November2022
Working Paper

Shared Decision-Making: Can Improved Counseling Increase Willingness to Pay for Modern Contraceptives?

Susan Athey, Katy Bergstrom, Vitor Hadad, Julian C. Jamison, Berk Özler, Luca Parisotto, Julius Dohbit Sama
September2021
Journal Article

Market Design to Accelerate COVID-19 Vaccine Supply

J. C. Castillo, A. Ahuja, Susan Athey, A. Baker, E. Budish, T. Chipty, R. Glennerster, S. D. Kominers, M. Kremer, G. Larson, J. Lee, C. Prendergast, C. M. Snyder, A. Tabarrok, B. J. Tan, W. Więcek
Science February252021

Interviews & Thought Leadership

Learn firsthand from researchers and practitioners associated with the lab.

Liu, MBA candidate '20, carved out a special niche in the use of data science as a tool for social change, reforming the government contracting process, and carrying out projects that help agencies do a better job of serving people in need.

Prendergast, professor of economics at the University of Chicago Booth, is using market mechanisms to redesign the food distribution system of Feeding America, the nation’s largest supplier of food to regional food banks.