Trading under asymmetric information, dynamics of competition within oligopolies, competition among health care providers
Home Faculty and Research Mark Satterthwaite
Mark Satterthwaite
MANAGEMENT & STRATEGY
A.C. Buehler Professor in Hospital & Health Services Management
Prof. of Strategic Management.& Managerial Economics
Chair of the Management & Strategy Department
Mark Satterthwaite is the A.C. Buehler Professor in Hospital and Heath Services Management at Northwestern’s Kellogg School of Management. He received his B.S. degree in 1967 from the California Institute of Technology and his Ph.D. in 1973 from the University of Wisconsin-Madison. He joined Kellogg directly out of graduate school in 1972 as an assistant professor and was promoted to professor in 1978.
Healthcare Management
Strategy
Voting Systems
Satterthwaite is a microeconomic theorist who has a keen applied interest in how health care markets work. His theoretical work focuses on how market mechanisms, when the number of participants is large, induce individuals to reveal their valuations almost accurately and select almost optimal allocations. He has published his work in leading journals including Econometrica, the Journal of Political Economy, the Review of Economic Studies, the Journal of Economic Theory, and the Rand Journal of Economics. He is a fellow of the Econometric Society, a founding member of the Game Theory Society, a member of the American Academy of Arts and Sciences, and a recipient of the Tenth Annual Research Award from the National Institute for Health Care Management Foundation. The National Science Foundation has awarded him several research grants.
Within Kellogg Satterthwaite teaches the MBA course, “Microeconomic Analysis.” He has served both as associate dean for academic affairs and, at different times, as chair of the Managerial Economics and Decision Sciences Department and of the Management and Strategy Department.
Areas of Expertise
Competition in HealthcareHealthcare Management
Strategy
Voting Systems
- Recent Media Coverage
New York Times: The Pitfalls of Linking Doctors’ Pay to Performance - 9/8/2008
See all Kellogg in the Media
Education
PhD, 1973, Economics, University of Wisconsin, MadisonMS, 1969, University of Wisconsin, MadisonBS, 1967, California Institute of Technology
Academic Positions
A.C. Buehler Professor in Hospital and Health Service Management, Kellogg School of Management, Northwestern University, 2003-presentProfessor of Strategic Management, Kellogg School of Management, Northwestern University, 1985-presentProfessor of Economics (by courtesy), Weinberg College of Arts and Sciences, Northwestern University, 1983-presentProfessor of Managerial Economics, Kellogg School of Management, Northwestern University, 1978-presentEarl Dean Howard Professor of Managerial Economics, Kellogg School of Management, Northwestern University, 1983-2003Visiting Professor, California Institute of Technology, 1989-1989Herman Smith Professor of Hospital and Health Services Management, Kellogg School of Management, Northwestern University, 1981-1983IBM Research Professor of Managerial Economics, Kellogg School of Management, Northwestern University, 1979-1981Assistant Professor, Kellogg School of Management, Northwestern University, 1972-1978
Editorial Positions
Associate Editor, Theoretical Economics, 2005-PresentAssociate Editor, Journal of Economic Theory, 1987-2009
Research Interests
Articles
Satterthwaite, Mark and Artyom Shneyerov. 2007. Dynamic Matching, Two-sided Incomplete Information, and Participation Costs: Existence and Convergence to Perfect Competition. Econometrica. 75(1): 155-200.
Capps, Cory, David Dranove and Mark Satterthwaite. 2003. Competition and Market Power in Option Demand Markets. RAND Journal of Economics. 34(4): 737-763.
Dranove, David, Daniel Kessler, Mark McClellan and Mark Satterthwaite. 2003. Is More Information Better? The Effects of Report Cards on Health Care Providers. Journal of Political Economy. 111(3): 555-588.
Capps, Cory, David Dranove, Shane Greenstein and Mark Satterthwaite. 2002. Antitrust Policy and Hospital Mergers: Recommendations for a New Approach. Antitrust Bulletin. 47(4): 677-704.
Satterthwaite, Mark and Steven R. Williams. 2002. The Optimality of a Simple Market Mechanism. Econometrica. 70(5): 1841-1863.
Satterthwaite, Mark. 2001. Strategy-proofness and Markets. Social Choice and Welfare. 18(1): 37-58.
Rustichini, Aldo, Mark Satterthwaite and Steven R. Williams. 1994. Convergence to Efficiency in a Simple Market with Incomplete Information. Econometrica. 62(5): 1041-1063.
Kalai, Ehud and Mark Satterthwaite. 1993. The Kinked Demand Curve, Facilitating Practices, and Oligopolistic Competition.
Satterthwaite, Mark. 1992. High-Growth Industries and Uneven Metropolitan Growth.
Dranove, David and Mark Satterthwaite. 1992. Monopolistic Competition when Price and Quality are not Perfectly Observable. RAND Journal of Economics. 23(4): 518-534.
O'hUallachain, Breandan and Mark Satterthwaite. 1992. Sectoral growth patterns at the metropolitan level: An evaluation of economic development incentives. Journal of Urban Economics. 31(1): 25-58.
Satterthwaite, Mark and Steven R. Williams. 1992. The Bayesian Theory of the k-Double Auction. The Double Auction Market: Institutions, Theories, and Evidence (book). 14
Satterthwaite, Mark and Steven R. Williams. 1989. Bilateral trade with the sealed bid k-double auction: Existence and efficiency. Journal of Economic Theory. 48(1): 107-133.
Linhart, Peter, Roy Radner and Mark Satterthwaite. 1989. Introduction: Symposium on Noncooperative Bargaining. Journal of Economic Theory. 48(1): 1-17.
Gresik, Thomas A. and Mark Satterthwaite. 1989. The Rate at which a Simple Market Becomes Efficient as the Number of Traders Increases: An Asymptotic Result for Optimal Trading Mechanisms. Journal of Economic Theory. 48
Satterthwaite, Mark and Steven R. Williams. 1989. The Rate of Convergence to Efficiency in the Buyers' Bid Double Auction as the Market Becomes Large. Review of Economic Studies. 56(4): 477-498.
Dranove, David, Mark Satterthwaite and Jody Sindelar. 1986. Preferred Provider Organization: Injecting Price Competition into the Hospital Market. Inquiry. 23(4): 419-431.
Dranove, David, Mark Satterthwaite and Jody Sindelar. 1986. The Effect of Injecting Price Competition into the Hospital Market: The Case of Preferred Provider Organizations. Inquiry. 23(4): 419-431.
Satterthwaite, Mark. 1985. Competition and Equilibrium as a Driving Force in the Health Services Sector.
Kumar, K. Ravi and Mark Satterthwaite. 1985. Monopolistic Competition, Aggregation of Competitive Information, and the Amount of Product Differentiation. Journal of Economic Theory. 37(1): 32-54.
Muller, Eitan and Mark Satterthwaite. 1985. Strategy-proofness: The Existence of Dominant Strategy Mechanisms.
Myerson, Roger B. and Mark Satterthwaite. 1983. Efficient Mechanisms for Bilateral Trading. Journal of Economic Theory. 29(2): 265-281.
Satterthwaite, Mark. 1981. On the Scope of Stockholder Unanimity Theorems. International Economic Review. 22(1): 119-133.
Satterthwaite, Mark and Hugo Sonnenschein. 1981. Strategy-proof Allocation Mechanisms at Differentiable Points. Review of Economic Studies. 48(4): 587-597.
Pauly, Mark V. and Mark Satterthwaite. 1981. The Pricing of Primary Care Physicians Services: A Test of the Role of Consumer Information. Bell Journal of Economics. 12(2): 488-506.
Satterthwaite, Mark. 1979. Consumer Information, Equilibrium Industry Price, and the Number of Sellers. Bell Journal of Economics. 10(2): 483-502.
Kalai, Ehud, Eitan Muller and Mark Satterthwaite. 1979. Social Welfare Functions when Preferences are Convex and Continuous: Impossibility Results. Public Choice. 34(1): 87-98.
Blin, Jean-Marie and Mark Satterthwaite. 1978. Individual Decisions and Group Decisions: The Fundamental Differences. Journal of Public Economics. 10(2): 247-267.
Blin, Jean Marie and Mark Satterthwaite. 1977. On Preferences, Beliefs, and Manipulation within Voting Situations. Econometrica. 45(4): 881-888.
Muller, Eitan and Mark Satterthwaite. 1977. The Equivalence of Strong Positive Association and Strategy-Proofness. Journal of Economic Theory. 14(2): 412-418.
Blin, Jean Marie and Mark Satterthwaite. 1976. Strategy-proofness and Single-peakedness. Public Choice. 26: 51-59.
Satterthwaite, Mark. 1975. Strategy-Proofness and Arrow's Conditions: Existence and Correspondence Theorems for Voting Procedures and Social Welfare Functions. Journal of Economic Theory. 10(2): 187-217.
Working Papers
Besanko, David, Ulrich Doraszelski, Mark Satterthwaite. 2009. Capacity Investment Dynamics under Differentiated Product Competition.
Satterthwaite, Mark, David Besanko, Ulrich Doraszelski and Yaroslav Kryukov. 2008. Learning-By-Doing, Organizational Forgetting and Industry Dynamics.
Satterthwaite, Mark, David Besanko, Ulrich Doraszelski. Lumpy Capacity Investment and Disinvestment Dynamics.
Dranove, David and Mark Satterthwaite. 2009. How rational are bargainers? Using the Stole/Zweibel bargaining model to examine hospital selective contracting.
Book Chapters
Dranove, David and Mark Satterthwaite. 2000. "The Industrial Organization of Health Care Markets." In Handbook of Health Economics, edited by A.J. Culyer, J.P. Newhouse, vol. 1B, 1093-1140. Elsevier.
Kalai, Ehud and Mark Satterthwaite. 1994. "The Kinked Demand Curve, Facilitating Practices, and Oligopolistic Coordination." In Imperfections and Behavior in Economic Organizations, edited by R. P. Gilles and P. H. M. Ruys, 15-38. Kluwer.
Dranove, David and Mark Satterthwaite. 1991. "The Implications of Resource-Based Relative Value scales for Physicians' Fees, Incomes, and Specialty Choices." In Regulating Doctors' Fees: Competition, Benefits, and Controls Under Medicare, edited by H. E. Frech, American Enterprise Institute.
Other
Capps, Cory, David Dranove, Shane Greenstein and Mark Satterthwaite. "Geographic Market Definition in Hospital Merger Cases." Testimony for the Federal Trade Commission and Department of Justice Hearings on Health Care and Competition Law and Policy, April.
Kalai, Ehud, Eitan Muller and Mark Satterthwaite. "Social Welfare Functions when Preferences are Convex, Strictly Monotonic, and Continuous." Public Choice, March.
Cases
Satterthwaite, Mark and John-Lindell Pfeffer. 2004. Nintendo, Inc.. Case 5-204-262 (KEL087).
Teaching Interests
Competitive strategy, microeconomicsFull-Time / Part-Time MBA
Microeconomic Analysis (MECN-430-0)This course counts toward the following majors: Managerial Economics.
Among the topics this core course addresses are economic analysis and optimal decisions, consumer choice and the demand for products, production functions and cost curves, market structures and strategic interactions, and pricing and non-price concepts. Cases and problems are used to understand economic tools and their potential for solving real-world problems.
Prerequisite: DECS-434, or concurrent registration.
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.
CONTACT INFO:
PHONE: 847-491-5482
FAX: 847-467-1777
PHONE: 847-491-5482
FAX: 847-467-1777
OFFICE:
Jacobs Center Room 621
Jacobs Center Room 621
