Mark Satterthwaite
Mark Satterthwaite

A.C. Buehler Professor in Hospital & Health Services Management
Professor of Strategy

Print Overview

Mark Satterthwaite is the A.C. Buehler Professor in Hospital and Heath Services Management, a Professor of Strategy, and a Professor of Managerial Economics at Northwestern's Kellogg School of Management. He is also a Professor of Economics (by courtesy) in Northwestern's Weinberg College of Arts and Sciences.  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.

Satterthwaite is a microeconomic theorist who has a keen applied interest in how health care markets work.   His theoretical work is in two areas.  The first is on how market mechanisms, when the number of participants is large, induce individuals to reveal their valuations almost accurately and select almost optimal allocations.  The second is the dynamics of competition under entry, exit, and investments into competitvive advantage.   On the health side, he is concerned with how consumer information affects competition among physicians and how the prices for hospital services are determined within a managed care environment.   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, the Rand Journal of Economics. and Games and Economic Behavior. He is an elected fellow of both the Econometric Society and the American Academy of Arts and Sciences as well as a founding member of the Game Theory Society.  He was the recipient of the Tenth Annual Research Award from the National Institute for Health Care Management Foundation and the Robert F. Lanzillotti Prize in Antitrust Economics of the Industrial Organization Society. The National Science Foundation has awarded him several research grants.

Within Kellogg Satterthwaite has taught the MBA courses, "Microeconomic Analysis" and "Industrial Structure and Competitive Strategy." He has served both as Associate Dean for Academic Affairs and as Chair of both the Managerial Economics, Decision Sciences, and Operations Department and  the Strategy Department.

Areas of Expertise
Competition in Healthcare
Game Theory
Healthcare Management
Industrial Organization Economics

Print Vita
PhD, 1973, Economics, University of Wisconsin, Madison
MS, 1969, University of Wisconsin, Madison
BS, 1967, California Institute of Technology

Academic Positions
A.C. Buehler Professor in Hospital and Health Service Management, Kellogg School of Management, Northwestern University, 2003-present
Professor of Strategic Management, Kellogg School of Management, Northwestern University, 1985-present
Professor of Economics (by courtesy), Weinberg College of Arts and Sciences, Northwestern University, 1983-present
Professor of Managerial Economics, Kellogg School of Management, Northwestern University, 1978-present
Earl Dean Howard Professor of Managerial Economics, Kellogg School of Management, Northwestern University, 1983-2003
Visiting Professor, California Institute of Technology, 1989-1989
Herman Smith Professor of Hospital and Health Services Management, Kellogg School of Management, Northwestern University, 1981-1983
IBM Research Professor of Managerial Economics, Kellogg School of Management, Northwestern University, 1979-1981
Assistant Professor, Kellogg School of Management, Northwestern University, 1972-1978

Honors and Awards
Robert F. Lanzillotti Best Paper Award in Antitrust Economics, Industrial Organization Society
Associate Editor, Theoretical Economics, 05-08
Stanley Reiter Best Paper Award (Co-Winner), Kellogg School of Management, 2005
Fellow, American Academy of Arts and Sciences, 04-04
Tenth Annual Research Award, National Institute for Health Care Management Foundation, 03-03
Founding member, The Game Theory Society, 00-00
Associate Editor, Journal of Economic Theory, 87-07
Fellow, Econometric Society, 86-86

Editorial Positions
Associate Editor, Theoretical Economics, 2005-2011
Associate Editor, Journal of Economic Theory, 1987-2009

Print Research
Research Interests
Trading under asymmetric information, dynamics of competition within oligopolies, competition among health care providers

Satterthwaite, Mark, Steven R. Williams and Konstantinos E. Zachariadis. 2014. Optimality versus Practicality in Market Design: A Comparison of Two Double Auctions. Games and Economic Behavior. 86: 248-63.
Satterthwaite, Mark, Steven R. Williams and Konstantinos E. Zachariadis. 2013. Optimality versus Practicality in Market Design: A comparison of Two Double Auctions. Games and Economic Behavior. 86: 248-63.
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.
Doraszelski, Ulrich and Mark Satterthwaite. 2010. Computable Markov-Perfect Industry Dynamics. RAND Journal of Economics. 41(2): 215-43.
Besanko, David, Ulrich Doraszelski, Yaroslav Kryukov and Mark Satterthwaite. 2010. Learning-By-Doing, Organizational Forgetting and Industry Dynamics. Econometrica. 78: 453-508.
Satterthwaite, Mark and Artyom Shneyerov. 2008. Convergence to Perfect Competition of a Dynamic Matching and Bargaining Market with Two-sided Incomplete Information. Games and Economic Behavior. 63(2): 435-467.
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.
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. 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.
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.
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
Linhart, Peter, Roy Radner and Mark Satterthwaite. 1989. Introduction: Symposium on Noncooperative Bargaining. Journal of Economic Theory. 48(1): 1-17.
Dranove, DavidMark Satterthwaite and Jody Sindelar. 1986. Preferred Provider Organization: Injecting Price Competition into the Hospital Market. Inquiry. 23(4): 419-431.
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.
Myerson, Roger B. and Mark Satterthwaite. 1983. Efficient Mechanisms for Bilateral Trading. Journal of Economic Theory. 29(2): 265-281.
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. 1981. On the Scope of Stockholder Unanimity Theorems. International Economic Review. 22(1): 119-133.
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.
Muller, Eitan and Mark Satterthwaite. 1977. The Equivalence of Strong Positive Association and Strategy-Proofness. Journal of Economic Theory. 14(2): 412-418.
Blin, JeanMarie and Mark Satterthwaite. 1977. On Preferences, Beliefs, and Manipulation within Voting Situations. Econometrica. 45(4): 881-888.
Blin, JeanMarie 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
Mermelstein, Ben, Volker Nocke, Mark Satterthwaite and Michael Whinston. 2015. Internal versus Externel Growth in Industries with Scale Economics: A Computational Model of Optimal Merger Policy.
Satterthwaite, Mark, Steven R. Williams and Konstantinos E. Zachariadis. 2014. Price Discovery.
Book Chapters
Satterthwaite, Mark. 2008. "Strategy-Proof Allocation Mechanisms." In New Palgrave Dictionary of Economics, edited by Lawrence Blume and Steven N. Durlauf, London, UK: Palgrave MacMillan.
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.
Satterthwaite, Mark and Steven R. Williams. 1992. "The Bayesian Theory of the k-Double Auction." In The Double Auction Market: Institutions, Theories, and Evidence, edited by D. Friedman and J. Rust, vol. 14, 99-124. Reading, Mass.: Addison-Wesley.
Satterthwaite, Mark. 1992. "High-Growth Industries and Uneven Metropolitan Growth." In Sources of Metropolitan Growth, edited by E. Mills and J. McDonald, 39-50. New Brunswick: Rutgers University Press.
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.
Muller, Eitan and Mark Satterthwaite. 1985. "Strategy-proofness: The Existence of Dominant Strategy Mechanisms." In Social Goals and Social Organization, edited by L. Hurwicz, D. Schmeidler, and H. Sonnenschein, 131-72. Cambridge: Cambridge University Press.
Satterthwaite, Mark. 1985. "Competition and Equilibrium as a Driving Force in the Health Services Sector." In Managing the Service Economy: Prospects and Problems, edited by R. Inman, 239-67. New York: Cambridge University Press.
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.
Satterthwaite, Mark and John-Lindell Pfeffer. 2004. Nintendo, Inc.. Case 5-204-262 (KEL087).

Print Teaching
Teaching Interests
Competitive strategy, microeconomics