Permanent Faculty – University of Copenhagen

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Department of Economics > People > Permanent Faculty

Peter Norman Sørensen

Peter Norman Sørensen


My research develops and applies new tools and concepts from economic theory with asymmetric information to topics in markets and institutions. One main topic is the herding behavior of large groups of individuals. Another main topic is the role of reputation-building for economic and financial experts and advisors. A third main topic is the response of asset prices to private and public information. Currently, I'm focused on improvements to the systems for producing and communicating new knowledge, and on effects on financial markets of a transactions tax.

Primary fields of research

Asymmetric Information in Finance and Economics.
Herding Behavior.
Prediction Markets.
Microstructure of Financial Markets.

Current research

I have a grant from the Danish Social Science Research Council to study Taxation of Transactions in Imperfect Financial Markets during the period 2015-2020.

I am a senior researcher on the ERC funded project "EVALIDEA—Designing Institutions to Evaluate Ideas," led by principal investigator Marco Ottaviani for the period 2012-2017.

I take part in a research project on "Biased attention and economic decision-making" led by Alexander Sebald for the period 2014-2017.

I am a member of the "Center for Financial Frictions (FRIC)" during 2012-2022.

I am a member of the "Center for Information and Bubble Studies (CIBS)" since 2015.

I take part in a research project on "Identifying the Role of Private Equity Firms in Creating Value" led by Christian Riis Flor for the period 2016-2020.

I am hosting Niels Bohr professor Morten Bennedsen on the project "The Impact of Family Assets on Corporate Structures and Outcomes," funded by the Danish National Research Foundation, 2017-2021.


I have lectured in courses on:

  • Financial Markets
  • Corporate Finance Theory
  • Corporate Governance
  • Private Equity and Hedge Funds
  • Games and Information
  • Dynamical Economics
  • Microeconomics
  • Topics in Game Theory

I have supervised projects, theses and PhD students in the intersections of Microeconomics, Game Theory and Finance.

Selected publications

  1. Published

    Price Reaction to Information with Heterogeneous Beliefs and Wealth Effects: Underreaction, Momentum, and Reversal

    Sørensen, P. N. & Ottaviani, M. Jan 2015 In : American Economic Review. 105, 1, p. 1-34

    Research output: Research - peer-reviewJournal article

  2. Published

    Noise, Information and the Favorite-Longshot Bias in Parimutuel Predictions

    Ottaviani, M. & Sørensen, P. N. 2010 In : American Economic Journal. Microeconomics. 2, 1, p. 58-85 18 p.

    Research output: Research - peer-reviewJournal article

  3. Published

    Surprised by the Parimutuel Odds?

    Ottaviani, M. & Sørensen, P. N. Dec 2009 In : American Economic Review (Print Edition). 99, 5, p. 2129-2134 6 p.

    Research output: Research - peer-reviewJournal article

  4. Published

    The strategy of professional forecasting

    Ottaviani, M. & Sørensen, P. N. 2006 In : Journal of Financial Economics. 81, 2, p. 441-466

    Research output: Research - peer-reviewJournal article

  5. Published

    Pathological Outcomes of Observational Learning

    Smith, L. & Sørensen, P. N. 2000 In : Econometrica. 68, 2, p. 371-398

    Research output: Research - peer-reviewJournal article

ID: 13335