Economics is often described as the study of how people make decisions, but sometimes, those decisions don’t follow the neat logic of traditional models. At the intersection of theory and behavior, postdoctoral scholar Francesco Fabbri is seeking clarity in the nuance. A specialist in microeconomic theory, Dr. Fabbri is currently based in the Department of Economics at UC Berkeley, where his research delves into how individuals and organizations make decisions, especially when those decisions are imperfect or seemingly irrational.
“I study what it means for agents to behave irrationally or make suboptimal decisions. We observe mistakes all the time in real-world decision-making, and I’m interested in building models that can help explain them,” Dr. Fabbri explains. He seeks to develop unified frameworks that can capture a range of behavioral patterns while still being analytically tractable. One of the most compelling tools in this effort is the concept of rational inattention. Dr. Fabbri broke it down, explaining, “The basic idea is that people make mistakes not because they’re fundamentally irrational, but because they’re inattentive - and attention is costly. So there’s a tradeoff: do you invest effort and mental energy to make a better decision, or do you conserve effort and accept some risk of error?” This framework helps researchers to understand how markets function in an age of information overload, and can be applied to product reviews, price comparisons, and even news.
Since arriving at Berkeley in July, Dr. Fabbri has quickly found the environment both intellectually stimulating and personally rewarding. “The economics group here is incredible. There’s a real mix of senior scholars and early-career researchers, which makes for rich, ongoing conversations,” he says. “And with connections to the Haas School of Business, there’s a great deal of cross-disciplinary collaboration as well.”
When asked about highlights from his research journey so far, Dr. Fabbri emphasizes the thrill of uncovering something unexpected. “What excites me most is when a model produces a surprising result, something counterintuitive that still logically follows from the assumptions. That process of discovery is incredibly satisfying.”
While research is a central focus, Dr. Fabbri also finds joy in activities outside the academic sphere. A former competitive table tennis player, he now enjoys watching soccer and basketball, traveling, trying new restaurants, and watching films. He explains that rest and recharging are essential in keeping his research sharp and focused.
As his time at Berkeley unfolds, Dr. Fabbri remains focused on deepening his theoretical work and preparing for future projects. With a keen eye for theory, a commitment to clarity, and a thoughtful approach to academic life, Dr. Fabbri is not only modeling decision-making behavior, he’s also shaping the future of economic research.