Portrait of Julia Schwarz

Julia Schwarz

Doctoral Researcher in Economics · Kiel University

How people value what machines make — and how machines behave when no one can check.

Fields: behavioral and experimental economics · economics of artificial intelligence

About

I run experiments on honesty and on what people are willing to pay. Some of my subjects are people. Some of them are language models.

I am a doctoral researcher in economics at Kiel University, at the Chair for Economics and Ethics, supervised by Prof. Dr. Jana Friedrichsen. The methods are ordinary behavioral and experimental economics. What has changed is who sits on the other side of the experiment. In one project I measure what listeners will pay for a song after being told a machine composed it. In another I put seven language models through a classic cheating game and count how often they lie.

I came to Kiel in 2023 from Humboldt University Berlin, where I did my M.Sc. in Economics with a thesis on uncertainty aversion in bargaining games. Before that, a B.Sc. in Economics and Business Administration at Justus Liebig University Gießen. Before any of it I trained and worked as a bank clerk. Three years of watching people decide what to do with their money is where the interest started.

Working papers

Liar, Liar, LLM on Fire?

Do large language models lie for their own gain?

259,000 pre-registered trials  /  7 frontier models

We gave seven frontier models a die-roll task borrowed from behavioral economics: the model rolls, reports its own outcome, and is paid on what it reports. When the roll happens only inside the model's head, 55 percent of reports name the best-paying number. Chance would give 16.7. Put a real draw in front of it and the misreporting nearly disappears. Raising the payoff from €5 to €3,000,000 does nothing at all. One sentence asking for honesty does a great deal. Models also sometimes skip the roll and invent a result, which is a way of cheating that has no counterpart in the human experiments.

Full abstract

Large language models increasingly report information that their principals cannot verify. We study whether they misreport it for their own gain by adapting the die-roll paradigm of Fischbacher and Föllmi-Heusi (2013) to seven frontier models in 259,000 pre-registered trials. A model rolls a die and reports the outcome, which alone determines its payoff, across three paradigms that vary whether the roll is imaginary, drawn by a provided tool, or drawn by self-written code. Reports are most self-serving where the outcome is imaginary. In the verbal paradigm, 55 percent of pooled control reports name the payoff-maximising value, against a benchmark of 16.7 percent. Once a genuine draw exists, misreporting nearly vanishes, and three models never misreport an observed draw. Honesty responds to a one-sentence honesty instruction, to personas, and to the instruction hierarchy, with an operator honesty instruction overriding a user payoff instruction for every model. However, the levers of agency theory do far less. Observability changes nothing, privacy assurances backfire, and stake variation from €5 to €3,000,000 leaves self-serving reporting essentially flat. A distinctively machine margin of dishonesty is fabrication, in which the model skips the draw and invents the result. Within the same cells, invented reports claim payoffs 0.23 higher than genuine ones on a 0–1 scale.

Can you tell if a song was made by AI — and would you pay less if you knew?

3 studies  /  N = 2,000 · 425 · 1,248

Across three studies with German-speaking listeners, nobody could reliably hear which songs an AI had written. Told nothing, participants rated the AI tracks slightly higher than the human ones and paid the same for them. Told that AI was involved, they rated them lower and paid less. Between those two conditions the music was identical. Only the label moved.

Full abstract

Artificial intelligence (AI) is rapidly reshaping society, including the music industry. Recent advancements in generative AI enable users to create music from text-based prompts, raising questions about public perception and valuation of AI-generated music. We conducted three studies with German-speaking participants (Study 1: N=2000, Study 2: N=425; Study 3: N=1248) to explore awareness, enjoyment, and willingness to pay for AI music. After finding no clear rejection of AI composed music in Study 1, Study 2 varied whether listeners knew the music was AI-generated. Study 3 involved regular listeners of pop and electronic dance music, manipulating song origin (human vs. AI) and disclosure. Results show that listeners generally could not distinguish between AI and human-made songs. When unaware, participants slightly preferred AI music and valued it equally. However, disclosing that AI had been used to create compositions reduced appreciation and willingness to pay. We explore how reactions differ by genre and individual attitudes toward AI and discuss implications for the music industry and for regulatory initiatives.

Teaching

I have taught tutorials in microeconomic theory, game theory, econometrics and behavioral economics every semester since 2022, at both Master’s and Bachelor’s level.

Kiel University 2023 – present
  • Advanced Microeconomics (M.Sc.) every winter term since 2023
  • Game Theory (M.Sc.) every summer term since 2024
  • Behavioral Economics and Ethics (M.Sc.) winter terms since 2025
  • Introduction to Economics (B.Sc.) winter 2023 and 2024
Humboldt University Berlin 2022 – 2023
  • Econometrics (B.Sc.) summer 2022 and 2023

Where to find me

Coming up

Conferences, workshops and visits over the coming months. If you’ll be there too, find me at the coffee break.

Barcelona

European Meeting of the Economic Science Association

2–5 September 2026  ·  Universitat Pompeu Fabra

Innsbruck

Annual Conference of the Verein für Socialpolitik

13–16 September 2026  ·  University of Innsbruck

Frankfurt

Annual Meeting of the GfeW

23–25 September 2026  ·  Frankfurt School of Finance & Management

Previously

2026
European Economic Review Summer School · Machine + Behavior · Aarhus, Kiel and Friends Workshop
2025
Aarhus, Kiel and Friends Workshop
2024
European Meeting of the Economic Science Association · PhD Workshop on the Economics of Criminal Behavior

Contact & profiles