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Does employee trust affect the economy? Prof. Dr. Stephan Müller joins BCB faculty as Professor of Economics

Prof. Dr. Stephan Müller has recently joined the Bard College Berlin faculty as Professor of Economics, specializing in the fields of behavioral, evolutionary, and organizational economics. He is an economist who researches the behavior of consumers, employees, and managers, both on the individual and societal level, and the resulting managerial and policy implications. Before joining Bard College Berlin, he was a Post-Doc at the Chair of Microeconomics at the University of Göttingen.

Now, as he becomes an integral part of BCB's Economics, Politics and Social Thought department, Müller eagerly anticipates contributing to the institution's unique educational mission. He emphasizes that BCB's academic environment not only provides a distinctive intellectual foundation for subsequent academic specialization, but also fosters personal development within a rich social context.

Müller is particularly drawn to the blend of pervasive cultural and intellectual diversity and the sense of belonging that defines Bard College Berlin. He adds,“I am enthusiastic about the overarching theme of ecologic, social, and economic sustainability in the research of many members in the economics and politics department. I am looking forward to learning new perspectives and bringing in my own.”

When asked what he hopes students take away from his classes, Müller says, “I would like them to experience that disagreements in a discourse are often rooted in different underlying assumptions, definitions, and values, but not necessarily in different objectives. This will help them to build bridges between seemingly opposing positions which benefits them in life and their careers.”

In his seminars, Müller “nurtures students’ curiosity and creativity, and encourages open minds and hearts by creating an enabling environment.” He notes that students are often critical of the status quo, and that should be encouraged, given the pressing need to shift towards more sustainable ecological, social, and economic systems. He notes that these societal changes require students to understand the fundamental principles and patterns of governing systems and institutions—areas where economics and statistics can be a powerful tool for analysis. 

In his own research, Müller integrates perspectives from economics, psychology, and biology—an approach which mirrors Bard College Berlin’s interdisciplinary approach. He says, “I believe that the plurality in methods and perspectives in my research resonates well with BCB’s educational mission.”

In a paper recently accepted at Management Science, Müller and his colleagues examined how employees' fear of disappointment affects their performance at work. He explains, “Employers often make promises, like a bonus payment or a promotion, to motivate employees and increase performance. Such incentives are usually somewhat vague in terms of what is required and what will be rewarded. This makes them fragile in the sense that it gives the employer some discretion about the fulfillment of the promise. If an employee puts in effort in response to a promise but is not rewarded, he will feel betrayed.”

The main question Müller addressed in this study is, “Will the anticipation of a potential betrayal discourage the employee, or will he work even harder to make sure he gets the reward?” Through a series of studies and a theoretical analysis, Müller and his colleagues found that more betrayal-averse employees show substantially lower performances. Müller hopes to apply this data to the broader economic landscape. He says, “Our framework captures a wide range of economic exchanges which require the parties’ trust.”

We extend a warm welcome to Dr. Stephan Müller as he joins BCB’s economics department and the broader campus community this academic year.

Post Date: 09-08-2023
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Bard College Berlin is institutionally accredited at the national level in Germany by the Wissenschaftsrat.

In the United States, Bard College Berlin is accredited through
Bard College by the Middle States Commission on Higher Education.

Qualifying students receive both a German BA and an American BA. 
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