Alvaro Sandroni
Alvaro Sandroni

E.D. Howard Professor of Political Economy
Professor of Managerial Economics & Decision Sciences

Print Overview

Alvaro Sandroni is the E.D. Howard Professor in Political Economy at the Kellogg School of Management, Northwestern University, where he has taught since 1996. He received his PhD in economics in 1996 from the University of Pennsylvania, his PhD in mathematics in 1994 from the Instituto de Matematica Pura e Aplicada (Brazil) and his B.Sc. in mathematics in 1986 from the Pontifica Universidade Catolica economics (Brazil). Sandroni has also taught at the University of Pennsylvania and the University of Rochester.

Sandroni has received grants from the Institute of Aging, the Bi-National Science Foundation and Bergmann Memorial Research as well as four National Science Foundation grants for behavioral science research. He served as a panelist for the National Science Foundation and was invited Fellow at the Center for Advanced Study in Behavioral Sciences. He has also received the 2003 Stanley Reiter Best Paper Award, the University of Pennsylvania’s William Polk Carey Prize in Economics for Best Ph. D. Dissertation and the Hiram C. Haney Fellowship Award in Economics at the University of Pennsylvania.

Sandroni is on the editorial boards of Economic Theory and the International Journal of Game Theory.

Sandroni’s research is in the areas of behavioral sciences, strategic forecasting, economic theory, game theory, political science, and general equilibrium theory. He has published numerous journal articles in economics, political science and game theory journals, including the American Political Science Review, American Economic Review, Econometrica, Annals of Statistics, Review of Economic Studies, Mathematics of Operations Research, Theoretical Economics, International Journal of Game Theory, Quarterly Journal of Political Science, Economic Theory, Journal of Mathematical Economics, Games and Economic Behavior, and Journal of Economic Theory.

Sandroni is the author (along with Peter Klibanoff, Boaz Moselle and Brett Saraniti) of Managerial Statistics: A Case-Based Approach (2005, Cengage Learning). He has also published his work in the Proceedings of the National Academy of Sciences.

Areas of Expertise
Behavioral Economics
Economic Theory
Game Theory
Voting Systems

  • Recent Media Coverage

    Economist Intelligence Unit: Executive Briefing: Expert or charlatan? A test to tell the difference between authentic experts and flimflam artists

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Print Vita
PhD, 1996, Economics, University of Pennsylvania
PhD, 1994, Mathematics, Instituto de Matematica Pura e Aplicada, Brazil
BSc, 1986, Mathematics, Pontificia Universidade Catolica, Brazil

Academic Positions
E.D. Howard Chair of Political Economy, Managerial Economics and Decision Sciences, Kellogg School of Management, Northwestern University, 2009-present
Professor, Economics, University of Pennsylvania, 2005-2009
Mechthild Esser Nemmers Professor, Managerial Economics and Decision Sciences, Kellogg School of Management, Northwestern University, 2003-2007
Mechthild Esser Nemmers Associate Professor, Managerial Economics and Decision Sciences, Kellogg School of Management, Northwestern University, 2001-2002
Associate Professor, Economics, University of Rochester, 2000-2001
Associate Professor, Managerial Economics and Decision Sciences, Kellogg School of Management, Northwestern University, 1999-2001
Assistant Professor, Managerial Economics and Decision Sciences, Kellogg School of Management, Northwestern University, 1996-1998

Honors and Awards
Research Award, Euromed Management, one year
Stanley Reiter Best Paper Award, Kellogg School of Management, 2003

Editorial Positions
Associate Editor, Economic Theory
Associate Editor, International Journal of Game Theory

Print Research
Research Interests
Behavioral Science; Strategic Forecasting; Political Science; Economic Theory; Game Theory

Sandroni, Alvaro and Larbi Alaoui. Forthcoming. Predestination and the Protestant Ethics. Journal of the European Economic Association.
Sandroni, Alvaro and Can Urgun. 2017. Dynamics in Art of War. Mathematics of Social Sciences. 86: 51-58.
Al-Najjar, Nabil, Luciano Pomatto and Alvaro Sandroni. 2014. Claim Validation. American Economic Review. 104(11): 3725-3736.
Al-Najjar, Nabil, Luciano Pomatto and Alvaro Sandroni. 2014. Merging and testing opinions. Annals of Statistics. 42(3): 1003-1028.
Sandroni, Alvaro and Eran Shmaya. 2014. A Prequential Test for Exchangeable Theories. Journal of Dynamics and Games. 1(3): 497-505.
Sandroni, Alvaro. 2014. At Least Do No Harm: The Use of Scarce Data. American Economic Journal: Microeconomics. 6(1): 1-4.
Sandroni, Alvaro and Eran Shmaya. 2013. Eliciting Beliefs by Paying in Chance. Economic Theory Bulletin. 1: 33-37.
Feddersen, Timothy, Vadim Cherepanov and Alvaro Sandroni. 2013. Revealed Preferences and Aspirations in Warm Glow Theory. Economic Theory. 54(3): 501-535.
Sandroni, Alvaro and Francesco Squintani. 2013. Overconfidence and Asymmetric Information: The Case of Insurance. Journal of Economic Behavior & Organization. 93: 149-165.
Feddersen, Timothy, Vadim Cherepanov and Alvaro Sandroni. 2013. Rationalization. Theoretical Economics. 8(3): 775-800.
Al-Najjar, Nabil and Alvaro Sandroni. 2013. A Difficulty in the Testing of Strategic Experts. Mathematical Social Sciences. 65(1): 5-9.
Sandroni, Alvaro, Philipp Kircher and Sandra Ludwig. 2013. On the Difference Between Private and Social Goods. B.E. Journal of Theoretical Economics. 13(1): 151-177.
Sandroni, Alvaro, Ali Jadbabaie, Pooya Molavi and Alireza Tahbaz-Salehi. 2012. Non-Bayesian Social Learning. Games and Economic Behavior. 76(1): 210-225.
Sandroni, Alvaro. 2011. Akrasia, Instincts and Revealed Preferences. Synthese. 181(1): 1-17.
Sandroni, Alvaro and Wojciech Olszewski. 2011. Falsifiability. American Economic Review. 101(2): 788-818.
Al-Najjar, NabilAlvaro Sandroni, Rann Smorodinsky and Jonathan Lewis Weinstein. 2010. Testing Theories with Learnable and Predictive Representations. Journal of Economic Theory. 145(6): 2203–2217.
Sandroni, Alvaro, Larry Epstein and Jawwad Noor. 2010. Non-Bayesian Learning. B.E. Journal of Theoretical Economics. 10(1)
Feddersen, Timothy, Sean Gailmard and Alvaro Sandroni. 2009. Moral Bias in Large Elections: Theory and Experimental Evidence. American Political Science Review. 103(2): 175-192.
Sandroni, Alvaro and Wojciech Olszewski. 2009. Moral Bias in Large Elections. Proceedings of the National Academy of Sciences. 106: 5029-5034.
Sandroni, Alvaro and Wojciech Olszewski. 2009. Strategic Manipulation of Empirical Tests. Mathematics of Operations Research. 34: 57-70.
Sandroni, Alvaro and Wojciech Olszewski. 2009. A Nonmanipulable Test. Annals of Statistics. 37(2): 1013-1039.
Sandroni, Alvaro and Wojciech Olszewski. 2008. Manipulability of Future-Independent Tests. Econometrica. 76: 1437-1466.
Sandroni, Alvaro, Larry Epstein and Jawwad Noor. 2008. Non-Bayesian Updating: A Theoretical Framework. Theoretical Economics. 3(2): 193-229.
Sandroni, Alvaro and Francesco Squintani. 2007. Overconfidence, Insurance and Paternalism. American Economic Review. 97(5): 1271-1282.
Sandroni, Alvaro and Wojciech Olszewski. 2007. Contracts and Uncertainty. Theoretical Economics. 2(1): 1-13.
Feddersen, Timothy and Alvaro Sandroni. 2006. A Theory of Participation in Elections. American Economic Review. 96(4): 1271-1282.
Feddersen, Timothy and Alvaro Sandroni. 2006. The Calculus of Ethical Voting. International Journal of Game Theory. 35(1): 1-25.
Feddersen, Timothy and Alvaro Sandroni. 2006. Ethical Voters and Costly Information Acquisition. Quarterly Journal of Political Science. 1(3)
Sandroni, Alvaro. 2005. Efficient Markets and Bayes' Rule. Economic Theory. 26(4): 741-765.
Sandroni, Alvaro. 2005. Market Selection when Markets are Incomplete. Journal of Mathematical Economics. 41(91-104)
Sandroni, Alvaro and Rann Smorodinsky. 2004. Belief-Based Equilibrium. Games and Economic Behavior. 47(1): 157-171.
Sandroni, Alvaro. 2003. The Reproducible Properties of Correct Forecasts. International Journal of Game Theory. 32(1): 151-159.
Sandroni, Alvaro and George Mailath. 2003. Market Selection and Asymmetric Information. Review of Economic Studies. 70(2): 343-369.
Smorodinsky, Rann, Rakesh Vohra and Alvaro Sandroni. 2003. Calibration with Many Checking Rules. Mathematics of Operations Research. 28(1): 141-153.
Sandroni, Alvaro. 2003. Speculative Trade, Asset Prices and Investment Levels. Economic Theory. 21(2-3): 423-433.
Sandroni, Alvaro. 2000. Do Markets Favor Agents Able to Make Accurate Predictions?. Econometrica. 68(6): 1303-1341.
Sandroni, Alvaro. 2000. Reciprocity and Cooperation in Repeated Coordination Games: The Principled-Player Approach. Games and Economic Behavior. 32: 157-182.
Sandroni, Alvaro and Aloisio Araujo. 1999. On the Convergence to Rational Expectations Under Complete Markets. Econometrica. 67(3): 663-672.
Sandroni, Alvaro and Rann Smorodinsky. 1999. The Speed of Rational Learning. International Journal of Game Theory. 28: 199-210.
Sandroni, Alvaro. 1999. Asset Prices and the Distribution of Wealth. Economics Letters. 64: 203-207.
Sandroni, Alvaro. 1998. Learning Rare Events and Recurrent Market Crashes in Frictionless Economies Without Intrinsic Uncertainty. Journal of Economic Theory. 82(1): 1-18.
Sandroni, Alvaro. 1998. Does Rational Learning Lead to Nash Equilibrium in Finitely Repeated Games. Journal of Economic Theory. 78(1): 195-218.
Sandroni, Alvaro. 1998. Necessary and Sufficient Conditions for Convergence to Nash Equilibrium: The Absolute Continuity Hypothesis. Games and Economic Behavior. 22: 121-147.
Working Papers
Sandroni, Alvaro and Leo Katz. 2017. The Inevitability and Ubiquity of Cycling in All Feasible Legal Regimes: A Formal Proof.
Kets, Willemien and Alvaro Sandroni. 2017. Challenging Conformity: A Case for Diversity.
Sandroni, Alvaro and Luciano Pomatto. 2017. An Axiomatic Theory of Inductive Inference.
Sandroni, Alvaro and Can Urgun. 2017. When to Confront: The Role of Patience.
Kets, Willemien and Alvaro Sandroni. 2015. A belief-based theory of homophily.
Sandroni, Alvaro, Wolfgang Hochtl, Rudolf Kerschbamer, Philipp Kircher and Sandra Ludwig. 2015. Social Preferences Under Uncertainty.
Sandroni, Alvaro and Larbi Alaoui. 2015. Predestination and the Protestant Ethics.
Sandroni, Alvaro and Leo Katz. 2015. Why Law Breeds Cycles.
Sandroni, Alvaro. 2015. The Evolution of Infertility and Incompetence.
Klibanoff, Peter, Boaz Moselle, Brett Saraniti and Alvaro Sandroni. 2006. Managerial Statistics: A Case-Based Approach. Mason, OH: Cengage Learning (formerly Thomson South-Western).

Print Teaching
Full-Time / Evening & Weekend MBA
Business Analytics II (DECS-431-0)

This core course is equivalent to the course DECS-440 (MMM Business Analytics).

This sequel to DECS-430 extends the statistical techniques learned in that course to allow for the exploration of relationships between variables, primarily through multivariate regression. In addition to learning basic regression skills, including modeling and estimation, students will deepen their understanding of hypothesis testing and how to make inferences and predictions from data. Students will also learn new principles such as identification and robustness. The course has an intense focus on managerial relevant applications, cases and interpretations.

Business Analytics (DECSM-431-0)

Values Based Leadership (KPPI-460-0)
The first issue a leader in the role of manager, entrepreneur, investor or stakeholder must address about an organization concerns its "value proposition," whether deciding to enter an industry or to begin an undertaking. However, this analysis is incomplete if leaders fail to consider the wider impact of the organization's actions on its own employees and on society. This course focuses on the problem of incorporating a wide variety of value perspectives into decision-making. Values-based leadership involves the ability to take the disparate value propositions of various stakeholders and integrate them into a coherent vision. We explore how recognizing and incorporating competing values claims throughout the organization is often facilitated and hindered by a number of psychological, organizational and cultural processes. Students will come to understand the variety of underlying mechanisms managers of organizations typically have at their disposal to successfully implement values objectives and select among different approaches, while anticipating the constraints placed on choice by the organization's market and non-market environments.

Economic Theory III: Doing Research in Economic Theory and Related Areas (MECS-550-3)
This course is designed to help students transition from being class-takers to researchers. The focus is on helping students find and develop possible topics for research. Topics in the course are of two kinds : professor chosen and student chosen. The first half of the course is professor-chosen, and focuses on cutting edge theoretical and/or experimental work in Contracts, Incentives, and Mechanism Design, which historically are fruitful areas for application of economic theory and reasoning. The second portion of the course focuses on student-chosen areas (with instructor approval). Here, the instructor works with students to develop their ideas with significant input also coming from fellow students. Students benefit not only from instructor assistance but also from the process of making/receiving comments from other students.