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Competitive and Organizational Strategy

Competitive and Organizational Strategy is designed to develop economists skilled in doing research on a broad variety of firm-related topics. The curriculum is appropriate for students interested in, for example, how relative firm performance is affected by dynamic strategic decisions. Economics and management faculty are actively engaged in theoretical and empirical research on these issues. Weekly economics and management seminars provide students with early access to novel research by both Simon School faculty and world-class speakers from other institutions. Students concentrating in Competitive and Organizational Strategy anticipate employment in the business economics or strategy group at other top tier business schools.

Faculty and Research Interests

  • Guy Arie: His research interests include the study of employee incentives, strategic competition between firms, and the design of employee roles in firms.
  • James A. Brickley: His interests include corporate control, compensation policy, corporate finance, franchising, and banking.
  • Paul Ellickson: His research interests lie at the intersection between quantitative marketing and industrial organization, with a focus on using structural modeling.
  • Jeanine Miklós-Thal: She is interested in industrial organization, marketing, and personnel economics.
  • Michael A. Raith: His interests include pricing strategies in the presence of market uncertainty, effects of financial constraints on the firm's behavior in product markets, performance evaluation in organizations, competition among firms, and optimal compensation policies and organizational structure within firms.
  • Heikki Rantakari: His research interests are in: Organizational Economics, Information Economics, Contract Theory 
  • Greg Shaffer: He employs game-theoretic methods to study issues in pricing policies, antitrust and regulation, distribution channels, vertical restraints, and other marketing topics.
  • Gerard J. Wedig: He applies corporate finance, governance, and organizational economics to study issues in the healthcare industry.

Recent Research in Competitive and Organizational Strategy

Does Direct Bargaining Bring the Best Price?

Guy Arie

A new paper by Guy Arie and two co-authors offers a new model of multilateral bargaining situations. The paper’s innovation lies in moving beyond bilateral to multilateral negotiations between suppliers—think hospitals and technology firms—and intermediaries, such as insurers and company purchasing departments. Read more about Generalized Insurance Bargaining.

 

What is the Cost of Compromise?

Heikki Rantakari

When it comes to group decision making, which kind of structure works best? Simon professor Heikki Rantakari, with Alessandro Bonatti of Sloan School of Management at Massachusetts Institute of Technology, explores the effects of consensus decision making on group performance in “The Politics of Compromise.” The paper was published in American Economic Review.

 

Colluding Through Suppliers

Jeanine Miklós-Thal

In a new study, Assistant Professor Jeanine Miklós-Thal shows that retailers can collude more easily on the prices consumers pay by also agreeing among them to pay above-cost wholesale prices and slotting fees to their suppliers. “Colluding Through Suppliers” is the first to look at collusion on wholesale prices as a method to facilitate collusion on output prices.

 

Multimarket Competition

Guy Arie

New research by Simon School assistant professor Guy Arie brings a fresh look at competition among firms that operate in multiple markets. Multimarket firms, common in the United States and world economy, compete in more than one market but don’t overlap in all markets. Companies move in and out of markets all the time as they expand sales and acquire other firms. The decisions they make about price, quantity, and other facets of product management expand or reduce their presence in various regions.  Read more about Multimarket Competition.

 

Understanding Incentive

Jeanine Miklós-Thal

Jeanine Miklós-Thal and co-author Hannes Ullrich were looking for a way to test whether future career prospects affect current effort incentives when they hit upon the perfect testing ground: European soccer. “Soccer is a nice way to test these incentives,” says Miklós-Thal, assistant professor of economics and marketing at the Simon School. “You need an environment where some people have a chance to be promoted and others do not. You can’t test the same thing in a business environment.” Read more about Understanding Incentive.

 
 
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