Luciano De Castro
Luciano de Castro

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

Print Overview
Luciano I. de Castro is an Assistant Professor of Managerial Economics and Decision Sciences. He joined the faculty at the Kellogg School of Management in 2010. He holds a PhD in Mathematical Economics from IMPA. His research interests include auction theory, decision theory and economic theory and energy markets. Professor de Castro is currently working on statistical dependence in auctions and models of decision theory with exchangeability.

Areas of Expertise
Economic Theory
Economics of Uncertainty
Equilibrium
Game Theory
Information Economics
Mechanism Design
Microeconomics
Print Vita
Education
1995, Electronic Engineer, ITA (Aeronautics Technological Institute)
PhD, 2004, Mathematical Economics, IMPA
Master in Sciences, 2001, Mathematical Economics, IMPA
MBA, 1999, Getulio Vargas Foundation

Academic Positions
Assistant Professor, Managerial Economics and Decision Sciences, Kellogg School of Management, Northwestern University, 2010-present
Visiting Assistant Professor, Managerial Economics and Decision Sciences, Kellogg School of Management, Northwestern University, 2008-2010
Assistant Professor, Univ. of Illinois at Urbana-Champaign, 2007-2008
Visiting Professor, Univ. Carlos III de Madrid, 2005-2007
Post-doc researcher, IMPA, 2004-2005

Grants and Awards
Haralambos Simeonidis Prize, National Association of Economic Schools
Institutional Capacitation Program Research Grant, Ministry of Science and Technology
Booster Award, Initiative for Sustainability and Energy at Northwestern (ISEN), 2013, one year
First Place, Economic Theory Best Paper, Brazilian Econometric Society, 2012, one year

Editorial Positions
Associate Editor, Economic Theory, 2010-Present

 
Print Research
Research Interests
Game theory; Economic theory; Decision theory

Articles
Al-Najjar, Nabil and Luciano de Castro. 2014. Parametric Representation of Preferences. Journal of Economic Theory. 150: 642-67-86.
Castro, Luciano de and Dan Karney. 2012. Equilibria Existence and Characterization in Auctions: Achievements and Open Questions. Journal of Economic Surveys. 26(5): 911-932.
Castro, Luciano de and Eduardo Andrade. 2011. Tougher Educational Exam Leading to Worse Selection. Economics: The Open-Access, Open-Assessment E-Journal. 5: 2011-2017.
Castro, Luciano de and A. Chateauneuf. 2011. Ambiguity Aversion and TraDe. Economic Theory. 48: 243-273.
Castro, Luciano de. 2011. Equilibrium Existence and Approximation of Regular Discontinuous Games. Economic Theory. 48: 67-85.
Castro, Luciano de, Marialaura Pesce and Nicholas Yannelis. 2011. Core and Equilibria unDer Ambiguity. Economic Theory. 48: 519-548.
Castro, Luciano de and de Frutos M. Angeles. 2010. How to translate results from auctions to procurement. Economic Letters. 106(2): 115-118.
Castro, Luciano de and Harry Paarsch. 2010. Testing Affiliation in Private-Values Models of First-Price Auctions Using Grid Distributions. The Annals of Applied Statistics. 4(4): 2073-2098.
Castro, Luciano de, Matias Negrete-Pincetic and George Gross. 2009. Response to Cavichi and Lemon: Our Analysis was Thorough. The Electricity Journal. 22(1): 5-12.
Castro, Luciano de and Aloisio Araujo. 2009. Pure Strategy Equilibria of Single and Double-Auctions with Interdependent Values. Games and Economic Behavior. 65(1): 25-48.
Castro, Luciano de and A. Riascos. 2009. Characterization of Bidding Behavior in Multi-Unit Auctions. Journal of Mathematical Economics.(45): 559-575.
Castro, Luciano de, Aloisio Araujo and H. Moreira. 2008. Non-monotonicities and the all-pay auction tie-breaking rule. Economic Theory. 35(4): 407-440.
Castro, Luciano de, Matias Negrete-Pincetic and George Gross. 2008. Product Definition for Future Electricity Supply Auctions: The 2006 Illinois Experience. The Electricity Journal. 21(7): 50-62.
Castro, Luciano de. 2006. Corrigendum to "Existence of Equilibrium in Single and Double Private Value Auctions". Econometrica,. 74(6): 1723-4.
Working Papers
Castro, Luciano de and Harry Paarsch. Forthcoming. How to translate results from auctions to procurement. Annals of Applied Statistics.
Castro, Luciano de. 2013. Monotonic Selections and Comparative Statics.
Castro, Luciano de and Rakesh Vohra. 2013. A Unifying Goal for Energy Policy: Improving Economic Efficiency.
Castro, Luciano de and Rakesh Vohra. 2013. On the Design of Electricity Markets.
Castro, Luciano de, Pedro N. Ferreira and Rakesh Vohra. 2013. The Re-Regulation Debate: Average vs. Marginal Pricing.
Al-Najjar, Nabil and Luciano de Castro. 2013. Ergodic Theory without Probability.
Castro, Luciano de, Marialaura Pesce and Nicholas Yannelis. 2012. A New Perspective to Rational Expectations: Maximin Rational Expectations.
Castro, Luciano de. 2012. A New Approach to Correlation of Types in Bayesian Games.
Castro, Luciano de and Nicholas Yannelis. 2012. Uncertainty, Efficiency and Incentive Compatibility.
Castro, Luciano de. 2012. Affiliation, Equilibrium Existence and Revenue Ranking of Auctions.
Al-Najjar, Nabil and Luciano de Castro. 2012. A Subjective Foundation of Objective Probabilities.
Book Chapters
Castro, Luciano de and Nabil Al-Najjar. 2011. "Subjective Probability." In Encyclopedia of Operations Research and Management Science, edited by James Cochran et al., Hoboken, NJ: John Wiley & Sons.
Conference Proceedings
Castro, Luciano de and Peter Cramton. 2012. "Prediction Markets for Electricity Demand." In Proceedings of IEEE 50th Annual Allerton Conference on Communication, Control, and Computing, 1097-1104.
Castro, Luciano de and Joisa Dutra. 2011. "The Economics of the Smart Grid." In Proceedings of IEEE 49th Annual Allerton Conference on Communication, Control, and Computing, 1294-1301.

 
Print Teaching
Teaching Interests
Competitive Strategy; Microeconomics
Full-Time / Part-Time MBA
Business Opportunities in Energy Markets (KPPI-915-A)
Energy markets are among the hottest of the world economy, and this is likely to remain true in the near future. New technologies, new business models and surprising developments (as the huge reserves made available because of hydraulic fracturing in the US) are fast changing the business landscape and creating new business opportunities. This course will offer an overview of energy markets and will discuss the many opportunities in different sectors. We will cover oil & gas and electricity markets, and will also discuss energy finance and market disruptions. Professionals with extensive experience in their sectors will deliver the five lectures of this half-credit course. These lecturers include two former Exxon Mobil executives who helped the world’s largest energy company estimate global energy needs through the production of the “Annual Energy Outlook”; the President of Edison International, the second largest utility in America; a board member of two large solar companies - SoCore Energy and Clean Power Finance; and an energy finance expert.

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.

Competitive Strategy and Industrial Structure (MECN-441-0)

This course counts toward the following majors: Management & Strategy, Managerial Analytics, 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.

Doctoral
Foundations of Managerial Economics I: Game Theory (MECS-460-3)
This course covers conflict and cooperation among rational decision makers in economic, political and social systems. Topics include games in extensive, normal and characteristic function forms; Nash equilibrium and refinements; Bayesian games; infinitely repeated games; stochastic games; Nash bargaining solution; and cooperative games. The course is self-contained but closely coordinated with ECON-410-3. Prerequisite: Knowledge of probability theory and elementary linear algebra; simultaneous enrollment in ECON-410-3 or permission of the instructor.