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Sandeep Baliga
Sandeep Baliga

MANAGERIAL ECONOMICS & DECISION SCIENCES
Associate Professor of Managerial Economics & Decision Sciences

Print Overview
Professor Baliga joined the faculty at the Kellogg School of Management in 1997. Prior to joining Kellogg, he was a Research Fellow at King's College, Cambridge University. Professor Baliga's research interests include the theory of the firm, game theory, mechanism design and international relations. Most recently, he has been studying how conflict can arise because a spiral of fear develops between adversaries. Baliga showed that communication is surprisingly useful in reducing fear and increasing cooperation. He has examined the impact of fear of conflict on domestic politics and the incentive to go to war. His current project shows how bluffing about weapons stockpiles can actually help to reduce arms proliferation.

Areas of Expertise
Contract Theory
Game Theory
International Economics
Mechanism Design
Microeconomics
  • Recent Media Coverage

    New York Times (Room for Debate blog): Dangers of a Weak Dictator - 6/17/2009

    Economist Intelligence Unit: Executive Briefing: Seeing Profit Despite Misunderstood Pricing Strategy - 12/16/2008

    See all Kellogg in the Media
Print Vita
Education
PhD, 1993, Economics, Harvard University
BA, 1988, Cambridge University, Double First Class Honors

Academic Positions
Associate Professor, Kellogg School of Management, Northwestern University, 2000-present
Member, Institute for Advanced Study, Princeton University, 2000-2001
Assistant Professor, Kellogg School of Management, Northwestern University, 1997-2000
Berry-Ramsey Junior Research Fellow, King's College, Cambridge University, 1993-1997

Editorial Positions
Co-Editor, Berkeley Electronic Press Journals in Theoretical Economics, 2007-2010
Associate Editor, B.E. Journal of Theoretical Economics, 2001-2007
Associate Editor, European Economic Review, 2006

 
Print Research
Research Interests
Game theory; mechanism design; contract theory; theory of the firm; game-theoretic approach to international relations

Articles
Al-Najjar, NabilSandeep Baliga and David Besanko. 2008. Market Forces and Behavioral Biases: Cost-Misallocation and Irrational Pricing. RAND Journal of Economics. 39(1): 214-237.
Baliga, Sandeep and Tomas Sjostrom. 2008. Strategic Ambiguity and Arms Proliferation. Journal of Political Economy. 116(6): 1023-1058.
Baliga, Sandeep and Tomas Sjostrom. 2004. Arms Races and Negotiations. Review of Economic Studies. 71(2): 351-369.
Baliga, Sandeep and Ben Polak. 2004. The Emergence and Persistence of German and Anglo-Saxon Financial Systems. Review of Financial Studies. 17(1): 129-163.
Baliga, Sandeep and Rakesh Vohra. 2003. Market Research and Market Design. BE Journals in Theoretical Economics. 3(1)
Baliga, Sandeep. 2002. The Not-So-Secret Agent: Professional Monitors, Hierarchies and Implementation. Review of Economic Design. 7(1): 17-26.
Baliga, Sandeep and Stephen Morris. 2001. Coordination, Spillovers and Cheap-Talk. Journal of Economic Theory. 105(2): 450-468.
Baliga, Sandeep and Roberto Serrano. 2001. Multilateral Negotiations with Private Side-Deals: A Multiplicity Example. Economics Bulletin. 3(1): 1-7.
Baliga, Sandeep and Tomas Sjostrom. 2001. Optimal Design of Peer Review and Self-Assessment Schemes (former title "Not Invented Here"). RAND Journal of Economics. 32(1): 27-51.
Baliga, Sandeep and Sandro Brusco. 2000. Collusion, Renegotiation and Implementation. Social Choice and Welfare. 17(1): 69-83.
Baliga, Sandeep and Robert Evans. 2000. Renegotiation in Repeated Games with Side-Payments. Games and Economic Behavior. 33(2): 159-176.
Baliga, Sandeep. 1999. Implementation in Economic Environments with Incomplete Information: The Use of Multi-Stage Games. Games and Economic Behavior. 27(2): 173-183.
Baliga, Sandeep and Tomas Sjostrom. 1999. Interactive Implementation. Games and Economic Behavior. 27(1): 38-63.
Baliga, Sandeep. 1999. Monitoring and Collusion with "Soft" Information. Journal of Law, Economics, & Organization. 15(2): 434-440.
Baliga, Sandeep and Tomas Sjostrom. 1998. Decentralization and Collusion. Journal of Economic Theory. 83(2): 196-232.
Baliga, Sandeep, Luis Corchon and Tomas Sjostrom. 1997. The Theory of Implementation when the Planner is a Player. Journal of Economic Theory. 77(1): 15-33.
Baliga, Sandeep and Roberto Serrano. 1995. Multilateral Bargaining with Imperfect Information. Journal of Economic Theory. 67(2): 578-589.
Working Papers
Baliga, Sandeep and Tomas Sjostrom. Forthcoming. Contracting with Third Parties. American Economic Journal: Microeconomics. Forthcoming
Axelson, Ulf and Sandeep Baliga. Forthcoming. Liquidity and Manipulation of Executive Compensation Schemes. Review of Financial Studies. Forthcoming
Baliga, Sandeep and Tomas Sjostrom. 2008. The Logic of Mutual Fear: Escalation and Deterrence in Conflict.
Baliga, Sandeep, David Lucca and Tomas Sjostrom. 2007. Domestic Political Survival and International Conflict: Is Democracy Good for Peace?.
Book Chapters
Baliga, Sandeep and Tomas Sjostrom. Forthcoming. "Durable Cheap Talk Equilibria." In Communication Games, edited by Richard Harbaugh, vol. 15, Holland: Elsevier.
Baliga, Sandeep and Tomas Sjostrom. 2006. "Mechanism Design: Recent Developments." In The New Palgrave Dictionary of Economics, edited by L. Blume and S. Durlauf, vol. 2, London, UK: Palgrave Macmillan.
Baliga, Sandeep and Eric Maskin. 2003. "Mechanism Design for the Environment." In Handbook of Environmental Economics, edited by Kenneth Arrow and Michael Intriligator (series eds.), Karl-Goran Maler and Jeffrey Vincent (vol. eds.), vol. 1, Netherlands: Elsevier Science.
Cases
Al-Najjar, NabilSandeep Baliga and Chris Forman. 2004. Steel Wars: A Battle for the Future of American Steel. Case 5-204-256 (KEL002).
Al-Najjar, NabilSandeep Baliga and Chris Forman. 2004. Sugar Daddy: Quotas and the U.S. Government. Case 5-204-255 (KEL001).

 
Print Teaching
Teaching Interests
Competitive strategy and industrial structure; crisis management; international relations
Full-Time / Part-Time MBA
Competitive Strategy and Industrial Structure (MECN-441-0)

This course counts toward the following majors: Analytical Consulting, Management & Strategy, Managerial Economics.

The course studies the determinants nature of competitive strategy in a variety of industry structures. The course considers how the structure of a firm's industry affects its strategic choices and performance. Topics include the dynamic aspects of pricing, entry and predation in concentrated industries, and product differentiation, product proliferation and innovation as competitive strategies.

Values and Crisis Decision Making (SEEK-440-A)

This course counts toward the following majors: Social Enterprise

In recent decades corporations have increasingly become the dominant source for political and social change. Increased globalization and technological progress have further accelerated this process. Businesses are now held accountable by standards other than legal compliance or financial performance. Successful business leaders have recognized that these challenges are best mastered by a commitment to values-based management. However, simply "doing the right thing" is not enough. Rather, companies increasingly find themselves as targets of aggressive legal action, media coverage and social pressure. Organizations must be prepared to handle rapidly changing environments and anticipate potential threats. This requires a deep understanding of the strategic complexities in managing various stakeholders and constituencies. To confront students with these challenges in a realistic fashion, the class is structured around a rich set of challenging case studies and crisis simulation exercises.

Executive MBA
Economics of Competition (MECNX-441-0)
Economics of Competition prepares students to diagnose the determinants of an industry’s structure and formulate rational, competitive strategies for coping with that structure.

Strategic Crisis Management (SEEKX-910-0)
Strategic Crisis Management provides conceptual tools for managers in high-pressure, complex crisis situations. Topics include management and media, dealing with activists and interest groups, and surviving legal, legislative and regulatory challenges.