David Besanko
David Besanko

IBM Professor of Regulation & Competitive Practices

Print Overview

Professor David Besanko is IBM Professor of Regulation & Competitive Practices at the Kellogg School of Management at Northwestern University.

Besanko is a Kellogg graduate, having received his Ph.D. in Managerial Economics and Decision Sciences in 1981. He received his AB in Political Science from Ohio University in 1977. Before joining the Kellogg faculty in 1991, Professor Besanko was a member of the faculty of the School of Business at Indiana University from 1982 to 1991. In addition, in 1985, he held a post-doctorate position on the Economics Staff at Bell Communications Research.

Professor Besanko teaches courses in Microeconomics and Competitive Strategy. In 1995, 2010, and 2016, the graduating class at Kellogg awarded Professor Besanko the L.G. Lavengood Professor of the Year, the highest teaching honor a faculty member at Kellogg can receive. In 2015 Professor Besanko received the Faculty Pioneer Award from the Aspen Institute's Business and Society Program (dubbed the "Oscar of the business school world" by the Financial Times). He was a finalist for that award in 2013. At the Kellogg School, Professor Besanko has received the Sidney J. Levy Teaching Award (1998, 2000, 2011, 2013), the Chair's Core Teaching Award (1999, 2001, 2003, 2005), and the Faculty Certificate of Impact (2009, 2010, 2011, 2012, 2013, 2015, 2016, 2017). end

Professor Besanko research covers topics relating to industry dynamics, competitive strategy, industrial organization, the theory of the firm, and economics of regulation. He has received grants from the National Science Foundation and from the Citicorp Behavioral Science Research Council to support this research. He is a member of the editorial boards of The Journal of Regulatory Economics, Business and Politics and Quantitative Marketing and Economics. He has over 50 articles published and forthcoming in leading professional journals in economics and business. Among other places, his work has appeared in the American Economic Review, the Quarterly Journal of Economics, the RAND Journal of Economics, the Review of Economic Studies, The Journal of Law and Economics, and Management Science. Along with David Dranove, Mark Shanley and Scott Schaefer, Professor Besanko is a co-author of Economics of Strategy, a widely used textbook in MBA courses on strategic management and competitive strategy. His textbook Microeconomics with Ron Braeutigam is now in its fifth edition.

Professor Besanko served as the chair of the Department of Management and Strategy from 1992 through 1996. During the academic year 2000-2001, he chaired the search committee to identify the new Kellogg dean. From 2001 to 2003, he served as Kellogg's Senior Associate Dean for Curriculum and Teaching, and from 2007 to 2009 he served as Senior Associate Dean for Strategy and Planning.

Areas of Expertise
Competitive Analysis
Industrial Organization Economics
Public Policy

Print Vita
PhD, 1982, Managerial Economics and Decision Sciences, Northwestern University
MS, 1980, Managerial Economics and Decision Sciences, Northwestern University
BA, 1977, Political Science, Ohio University

Academic Positions
IBM Professor of Regulation and Competitive Practice, Strategy, Kellogg School of Management, Northwestern University, 2015-present
Alvin J. Huss Distinguished Professor of Management and Strategy, Management & Strategy, Kellogg School of Management, Northwestern University, 1995-2014
Senior Associate Dean for Academic Affairs: Strategy & Planning , Kellogg School of Management, Northwestern University, 2007-2009
Senior Associate Dean for Academic Affairs: Teaching & Curriculum, Kellogg School of Management, Northwestern University, 2001-2003
Professor of Management and Strategy, Management & Strategy, Kellogg School of Management, Northwestern University, 1991-1995
Associate Professor of Business Economics and Public Policy, Indiana University, 1988-1991
Assistant Professor of Business Economics and Public Policy, Indiana University, 1982-1988

Honors and Awards
Faculty Pioneer Award, Aspen Institute
Finalist, Faculty Pioneer Award, Aspen Institute
Certificate of Impact Teaching Award, Kellogg, 2017, 2016, 2015, 2013, 2012, 2011, 2009
Sidney Levy Teaching Award, 2012-2013, 2010-2011, 2008-2009, 1999-2000, 1997-1998
L.G. Lavengood Outstanding Professor of the Year Award, Kellogg School of Management, 2016, 2010, 1995
Faculty Impact Award, 2009, 2010, 2011, 2012, 2013, 2015
Kellogg Alumni Choice Teaching Award, Kellogg Graduate School of Management, 2006
Kellogg Alumni Professor of the Year Award, Kellogg School of Management, 2006
Finalist for L. G. Lavengood Outstanding Professor of the Year Award, Kellogg School of Management, 2009, 2006, 2001, 2000, 1999
Chairs' Core Course Teaching Award, Kellogg School of Management, 2004-2005, 2002-2003, 2000-2001, 1998-1999
Outstanding Young Faculty Award, Indiana University, 1989
MBA Teaching Excellence Award in Economics, Indiana School of Business, 1988, 1987, 1986
Doctoral Students Teaching Excellence Award, Indiana School of Business, 1988
Beta Gamma Sigma, Beta Gamma Sigma International Honor Society, 1982
Phi Beta Kappa, Phi Beta Kappa Society, 1977

Editorial Positions
Ad hoc reviewer, RAND Journal of Economics, 2016-2017
Ad hoc reviewer, Economics Letters, 2017-2017
Ad hoc reviewer, Journal of Regulatory Economics, 2016-2016
Ad-hoc Reviewer, Journal of Economic Theory, 2015-2015
Editorial Board, Review of Industrial Organization, 2006-present
Editorial Board, Journal of Regulatory Economics, 1988-present
Ad-hoc Reviewer, RAND Journal of Economics
Ad-hoc Reviewer, Review of Economic Studies
Ad-hoc Reviewer, International Economic Review
Ad-hoc Reviewer, Journal of Infrastructure Systems

Print Research
Research Interests
Industrial economics; competitive strategy; public policy economics

Besanko, David and Shana Cui. 2017. Railway Restructuring and Organizational Choice: Network Quality and Welfare Impacts: Online Appendix. Journal of Regulatory Economics.
Besanko, David and Shana Cui. 2016. Railway Restructuring and Organizational Choice: Network Quality and Welfare Impacts. Journal of Regulatory Economics. 50(2): 164-206.
Besanko, David and Shana Cui. 2016. Horizontal versus Vertical Separation in Railway Networks: Implications for Network Quality. Economics Letters. 138: 78-80.
Besanko, David, Ulrich Doraszelski and Yaroslav Kryukov. 2014. The Economics of Predation: What Drives Pricing When There Is Learning-by-Doing?". American Economic Review. 104(3): 868-897.
Besanko, David, Yaroslav Kryukov and Ulrich Doraszelski. 2012. The Economics of Predation: What Drives Prices When There is Learning-by-Doing?: Online Appendix.
Besanko, David and Jianjun Wu. 2013. The Impact of Market Structure and Learning on the Tradeoff between R&D Competition and Cooperatio. Journal of Industrial Economics. 61(1): 166-201.
Besanko, David and Jianjun Wu. 2012. The Impact of Market Structure and Learning on the Tradeoff Between R&D Competition and Collaboration. Journal of Industrial Economics.
Besanko, David, Ulrich Doraszelski, Yaroslav Kryukov and Mark Satterthwaite. 2010. Learning-By-Doing, Organizational Forgetting and Industry Dynamics. Econometrica. 78: 453-508.
Besanko, DavidMark Satterthwaite, Ulrich Doraszelski and Lauren Xiaoyuan Lu. 2010. On the Role of Demand and Strategic Uncertainty in Capacity Investment and Disinvestment Dynamics. International Journal of Industrial Organization. 28(4): 383-389.
Besanko, David, Ulrich Doraszelski, Lauren Xiaoyuan Lu and Mark Satterthwaite. 2010. Lumpy Capacity Investment and Disinvestment Dynamics. Operations Research. 58: 1178-93.
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.
Besanko, David, Pierre Regibeau and Kate Rockett. 2005. A Multi-Task Principal-Agent Model of Organizational Form. Journal of Industrial Economics. 53(4): 437-467.
Besanko, David, Jean-Pierre Dube and Sachin Gupta. 2005. Retail Pass Through on Competing Brands. Marketing Science. 24(1): 24-34.
Besanko, David and Ulrich Doraszelski. 2004. Capacity Dynamics and Endogenous Asymmetries in Firm Size. RAND Journal of Economics. 35(1): 23-49.
Besanko, David, Jean-Pierre Dube and Sachin Gupta. 2003. Competitive Price Discrimination Strategies in a Vertical Channel Using Aggregate Retail Data. Management Science. 49(9): 1121-1138.
Baron, David and David Besanko. 2001. Strategy, Organization, and Incentives: Global Corporate Banking at Citibank. Industrial and Corporate Change. 10(1): 1-36.
Besanko, David, Julia D'Souza and S.Ramu Thiagarajan. 2001. The Effect of Wholesale Market Deregulation on Shareholder Wealth in the Electric Power Industry. Journal of Law and Economics. 44(1): 65-88.
Besanko, DavidDavid Dranove and Mark Shanley. 2001. Exploiting a Cost Advantage and Coping with a Cost Disadvantage. Management Science. 47(2): 221-235.
Baron, David and David Besanko. 1999. Informational Alliances. Review of Economic Studies. 66(4): 743-68.
Besanko, David, Sachin Gupta and Dipak C. Jain. 1998. Logit Demand Estimation Under Competitive Pricing Behavior: An Equilibrium Framework. Management Science. 44(11): 1533-1547.
Besanko, David and George Kanatas. 1996. Do Capital Standards Increase Banking Safety. Journal of Financial Intermediation. 5(2): 160-183.
Besanko, David and Martin K. Perry. 1994. Exclusive Dealing in a Spatial Model of Retail Competition. International Journal of Industrial Organization. 12(3): 297-329.
Besanko, David and George Kanatas. 1994. Credit Market Equilibrium with Bank Monitoring and Moral Hazard. Review of Financial Studies. 6(1): 213-323.
Besanko, David and Martin K. Perry. 1993. Equilibrium Incentives for Exclusive Dealing in a Differentiated Products Oligopoly. RAND Journal of Economics. 24(4): 646-667.
Besanko, David and Thomas P. Lyon. 1993. Equilibrium Incentives for Most-Favored Customer Clauses in Oligopolistic Industry. International Journal of Industrial Organization. 11(3): 347-367.
Besanko, David and Daniel Spulber. 1993. Contested Mergers and Equilibrium Antitrust Policy. Journal of Law, Economics, & Organization. 9(1): 1-29.
Baron, David and David Besanko. 1992. Information, Control, and Organizational Structure. Journal of Economics & Management Strategy. 1(2): 237-275.
Besanko, David and Daniel Spulber. 1992. Sequential Equilibrium Investment by a Regulated Firm. RAND Journal of Economics. 23(2): 153-170.
Besanko, David and Anjan V. Thakor. 1992. Banking Deregulation: Allocational Consequences of Relaxing Entry Barriers. Journal of Banking and Finance. 16(5): 909-932.
Besanko, David and Daniel Spulber. 1992. Delegation, Commitment, and the Regulatory Mandate. Journal of Law, Economics, & Organization. 8(1): 126-154.
Besanko, David and Wayne L. Winston. 1991. Optimal Pricing Maintenance and Manufacturer. European Journal of Operations Research. 55(2): 268-278.
Perry, Martin K. and David Besanko. 1991. Resale Price Maintenance and Manufacturer Competition for Exclusive Dealerships. Journal of Industrial Economics. 39(5): 517-544.
Besanko, David. 1991. Delegation and Transfer Pricing in a Principal-Agent model. International Economic Review. 32(1): 55-68.
Besanko, David and Daniel Spulber. 1990. Are Treble Damages Neutral? Sequential Equilibrium and Private Antitrust Enforcement. American Economic Review. 80(4): 870-887.
Besanko, David and Wayne L. Winston. 1990. Optimal Price Skimming by a Monopolist Facing Rational Consumers. Management Science. 36(5): 555-567.
Besanko, David and Martin K. Perry. 1990. The Logit Model of Monopolistic Competitions. Journal of Industrial Economics. 38(4): 397-415.
Besanko, David and Daniel Spulber. 1989. Antitrust Enforcement Under Asymmetric Information. Economic Journal. 99(396): 408-425.
Besanko, David and Daniel Spulber. 1989. Delegated Law Enforcement and Noncooperative Behavior. Journal of Law, Economics, & Organization. 5(1): 25-52.
Besanko, David. 1988. Rate of Return Regulation and Product Variety. Journal of Public Economics. 36(3): 293-304.
Baron, David and David Besanko. 1988. Monitoring of Performance in Organizational Contracting: The Case of Defense Procurement. Scandinavian Journal of Economics. 90(3): 329-356.
Besanko, David. 1988. Regulation and Product Quality in a Multiproduct Firm. Journal of Industrial Economics. 36(4): 411-429.
Besanko, David. 1988. The Impact of Buyers Expectations on Entry Deterrence. Economic Letters. 26(4): 26-42.
Baron, David and David Besanko. 1987. Monitoring Moral Hazard, Asymmetric Information, and Risk Sharing in Procurement Contracting. RAND Journal of Economics. 18(4): 509-532.
Besanko, David. 1987. Monopoly and Quality Distortions: Effects and Remedies. Quarterly Journal of Economics. 102(4): 743-767.
Besanko, David and Anjan V. Thakor. 1987. Competition, Collateral, and Sorting Equilibria in the Credit Market. International Economic Review. 28(3): 671-690.
Baron, David and David Besanko. 1987. Commitment and Fairness in a Continuing Regulatory Relationship. Review of Economic Studies. 54(179): 413-437.
Besanko, David and Anjan V. Thakor. 1987. Competitive Equilibrium in the Credit Market Under Asymmetric Information. Journal of Economic Theory. 42(1): 167-182.
Besanko, David. 1985. Multiple period Contracts between Principal and Agent with Adverse Selection. Economic Letters. 17(1-2): 33-37.
Baron, David and David Besanko. 1984. Regulation, Asymmetric Information, and Auditing. RAND Journal of Economics. 15(4): 447-470.
Baron, David and David Besanko. 1984. Regulation Information in a continuing Relationship. Information Economics and Policy. 1(3): 267-302.
Besanko, David, Jean-Pierre Dube and Sachin Gupta. 2005. Own-Brand and Cross-Brand Retail Pass-Through. Marketing Science. 24(1): 123-137.
Working Papers
Besanko, David, Jian Tong and Jianjun Wu. 2016. Government Subsidies for Research Programs Facing "If" and "When" Uncertainty.
Dranove, DavidCraig Garthwaite and David Besanko. 2016. The Impact of Health Insurance on Pharmaceuticals Pricing When Consumers Face Liquidity Constraints.
Besanko, David, Ulrich Doraszelski and Yaroslav Kryukov. 2015. Is Dynamic Competition Socially Beneficial? The Case of Price as Investment.
Besanko, David, Jose Abito and Daniel Diermeier. 2015. The Dynamics of Corporate Campaigns.
Besanko, David, Jianjun Wu and Jian Tong. 2015. A Dynamic Game Under Ambiguity: Contracting for Delegated Experimentation.
Book Chapters
Diermeier, Daniel, Jose Abito and David Besanko. 2016. "Corporate Reputational Dynamics, Private Regulation, and Activist Pressure. Under review." In Advances in Strategic Management, edited by John M. de Figueiredo, Michael Lenox, Felix Oberholzer-Gee, Richard G. Vanden Bergh, 235-299. Emerald Group Publishing.
Besanko, David and Anjan V. Thakor. 1993. "Relationship Banking Deposit Insurance, and Bank Portfolio Choice." In Capital Markets and Financial Intermediation, edited by Colin Mayer and Xavier Vives, 292-318. Cambridge University Press.
Besanko, David. 1988. "On the Use of Revenue Requirements Regulation Under Imperfect Information." In Analyzing the Impact of Regulatory Change, edited by Michael A. Crew, 23-49. Lexington, MA: Lexington Books.
Dranove, DavidDavid Besanko, Scott Schaefer and Mark Shanley. 2014. Economics of Strategy, Sixth Edition.
Besanko, David and Ron Braeutigam. 2014. Microeconomics, 5th edition. New York: John Wiley & Sons, Fifth Edition.
Dranove, DavidDavid Besanko, Mark Shanley and Scott Schaefer. 2015. Economics of Strategy 7th Edition. Hoboken, N.J.: John Wiley & Sons, 6th edition.
Besanko, David and David E. Sappington. 1987. Designing Regulatory Policy with Limited Information. Harwood Academic Press.
Besanko, David and Melissa Ulan. 2011. Should the Ethanol Blender’s Credit Be Eliminated?. Case 5-111-001 (KEL523).
Besanko, David. 2003. Corning, Inc: 1999. Chicago: Kellogg School of Management, Case 5-403-753.
Besanko, David and João Tenreiro Gonçalves. 2010. High-Speed Rail in Portugal. Case 5-410-751 (KEL513).
Al-Najjar, NabilDavid Besanko and Robert Uchoa. 2004. Credit Solicitations as Market Experiments in the U.S. Credit Card Industry. Case 5-204-252 (KEL005).
Besanko, David. 2004. Zoltek. Case 5-204-254 (KEL007).
Besanko, David and Takatoshi Imada. 2004. Asahi's Single-Brand Strategy. Case 5-204-251 (KEL003).
Al-Najjar, NabilDavid Besanko and Amit Nag. 2004. California Power Crisis. Case 5-403-759 (KEL004).
Besanko, David and Saahil Malik. 2009. Reforming Social Security Around the World. Case 5-409-758 (KEL493).
Besanko, David and James Lee. 2009. The End of the Beginning of Venture Capital. Case 5-209-252.
Besanko, David, Saahil Malik and Vidhyashankar Balasubramanian. 2011. The U.S. Gasoline Tax: Time for a Change. Case 5-409-751 (KEL517).
Al-Najjar, Nabil and David Besanko. 2004. Motorola in the Wireless Handset Market. Case 5-204-261 (KEL023).
Besanko, David. 2004. The Mother of All (Pricing) Battles: The 1992 Airline Price War. Case 5-204-250 (KEL006).
Besanko, David and Christopher Stori. 2006. Eurotunnel versus the Ferries. Case 5-206-256 (KEL190).
Besanko, David and Johannes Horner. 2006. London's Congestion Charge. Case 5-206-257 (KEL193).
Besanko, David, Sarah Gillis and SiSi Shen. 2009. Polio Eradication—Within Our Reach?. Case 5-409-757 (KEL492).
Besanko, David and Brett Burgess. 2007. Subsidies and the Global Cotton Trade. Case 5-307-507 (KEL348).

Print Teaching
Teaching Interests
Public policy economics; microeconomics
Full-Time / Evening & Weekend MBA
Public Economics for Business Leaders: Federal Policy (KPPI-470-0)
To be an effective business leader in today's complex world requires an understanding of the important public policy issues facing society. Managers need to understand society's problems and the range of possible public solutions and policies in order to know how to influence, incorporate and respond to public actions. This class will enable students to understand, analyze and take the perspective of government and non-government organizations as they attempt to alleviate societal problems. Topics include the interface of government and business, the justification for and principle methods of government intervention in the market place, the primary means of paying for government, measuring the costs and benefits of government policies, and current policy applications such as social security reform, education policy, health insurance and tax reform.