Matthew Shum's research lies at the intersection of industrial organization, econometrics, and applied microeconomics. Most of his research involves applying statistical modeling and testing to consumer and firm level datasets. He studies how rational consumers actually behave in the field, whether equilibrium models of rational decision making are appropriate for firms, and how optimally real-life firms behave.

Shum was previously on the faculty at Johns Hopkins University from 2000 to 2008. Before that, he was on the faculty at the University of Toronto from 1998 to 2000.