Managerial Economics and Decision Sciences

  • David Austen-Smith
    David Austen-Smith
    Peter G. Peterson Chair in Corporate Ethics David Austen-Smith Photo © Nathan Mandell

The Managerial Economics and Decision Sciences Department (MEDS) is a combination of the Managerial Economics, Decision Sciences and Operations Management Programs.

The faculty of the Kellogg School's MEDS department are world-renowned for their teaching concentrates on probability, work in game theory, decision theory, statistics and microeconomics. more...

Kellogg Insight presents articles on Managerial Economics & Decision Sciences

Is Constant Reinvention the Key to Success?
An interview with Lloyd Shefsky about Invent, Reinvent, Thrive
Based on the research of Lloyd Shefsky
An interview with Lloyd Shefsky about Invent, Reinvent, Thrive: Lloyd Shefsky discusses how entrepreneurs, companies, and especially family businesses can thrive in today’s market.

Online Brands Show Their Stuff Offline
Building brick-and-mortar showrooms can have big payoffs for online retailers
Based on the research of David Bell , Santiago Gallino And Antonio Moreno-Garcia
Building brick-and-mortar showrooms can have big payoffs for online retailers: As traditional companies are expanding online, online retailers are setting up storefronts—a move that can significantly increase their revenue and help satisfy shoppers, according to a recent study by Antonio Moreno, an assistant professor of managerial economics and decision sciences at the Kellogg School of Management, along with colleagues David Bell (University of Pennsylvania) and Santiago Gallino (Dartmouth College). Where Warby Parker, the online eyewear retailer, opened showrooms—in which customers could try on (though not take home) glasses—it increased overall sales significantly. In addition, Moreno and his coauthors found that “pickier” customers—those less lax about the fit of the glasses (and more expensive to please)—were the likeliest to take advantage of the showroom, leaving less picky customers shopping online. When a showroom opened, the researchers found, customers were more likely to buy glasses after ordering them online to try on, less likely to order repeat unsuccessful try-ons, and less likely to return purchases. The results suggest that opening up a showroom can earn the company revenue, shift customers who were expensive to serve online to cheaper channels, and match customers with the shopping channel where they get the preferred product information before making a decision.

How to Win at Risk
A Q&A with Russell Walker about risk management
Based on the research of Russell Walker
A Q&A with Russell Walker about risk management: In a new book, Russell Walker argues that risk management can bring companies a competitive advantage.

Managerial Economics and Decision Sciences Department News