Professor Erte Xiao
Affiliation: Monash University
Discipline: Economics
Year elected: 2024
What initially drew you to your field of study?
I’ve always been curious about how people make decisions—often in ways that differ from traditional economic predictions. Behavioural economics allows me to combine insights from psychology and economics to better understand human motivation and decision-making. It’s a field that connects rigorous analysis with real-world behaviour, which I find fascinating.
What are you most proud of?
I was very fortunate to work with Vernon Smith, the 2002 Nobel Laureate in Economics, during my PhD. His curiosity and openness to ideas beyond traditional boundaries inspired me to read broadly, stay humble, and learn from other disciplines.
How would you describe your work at a dinner party?
I study how people make decisions. My recent research looks at how social norms and the way choices are presented can shape those decisions. By incorporating behavioural insights into the design of institutions, we can help markets and workplaces function more effectively and fairly.
What continues to motivate your work?
I’m motivated by the belief that insights from behavioural science can not only improve efficiency but also help build fairer systems, which are often more challenging to achieve and require a deep understanding of human nature. Seeing my research inform policy design and organisational practices, and sometimes change how people think, keeps me inspired.
Where is your ‘happy’ place?
My happy place is at home with my kids, reading together, discussing their school projects, and hearing their curious questions about how the world works, many of which I often can’t answer well.