Karl Schmedders
Karl Schmedders

EXECUTIVE EDUCATION
Visiting Professor of Managerial Economics & Decision Sciences

Print Overview

Karl Schmedders is Associate Professor in the Department of Managerial Economics and Decision Sciences. He holds a PhD in Operations Research from Stanford University.

Professor Schmedders’ research interests include computational economics, general equilibrium theory, asset pricing and portfolio selection. His work has been published in Econometrica, The Review of Economic Studies, The Journal of Finance, and many other academic journals. He teaches courses in decision science both in the MBA and the EMBA program at Kellogg. Professor Schmedders has been named to the Faculty Honor Roll in every quarter he has taught at Kellogg. He has received numerous teaching awards, including the 2002 Lawrence G. Lavengood Outstanding Professor of the Year. Professor Schmedders is the only Kellogg faculty member to receive the ‘Ehrenmedaille’ (Honorary Medal) of Kellogg’s partner school WHU.



  • Recent Media Coverage

    Economist Intelligence Unit: Executive Briefing: Uncertainty principles: Uncovering flaws in old price cap notions

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Print Vita
Education
PhD, 1996, Operations Research, Stanford University
MS, 1992, Operations Research, Stanford University
Vordiplom, 1990, Business Engineering, Universitat Karlsruhe, Highest Honors, Ranked first in a class of 350

Academic Positions
Head of Knowledge Center and Member of the Management Board, Swiss Finance Institute, 2013-present
Visiting Professor of Executive Education, Kellogg School of Management, Northwestern University, 2013-present
Professor of Quantitative Business Administration, University of Zurich, 2008-present
Visiting Associate Professor of Managerial Economics and Decision Sciences, Kellogg School of Management, Northwestern University, 2011-2013
Director of the Institute for Operations Research, University of Zurich, 2008-2010
Associate Professor of Managerial Economics and Decision Sciences, Kellogg School of Management, Northwestern University, 2001-2008
Assistant Professor of Managerial Economics and Decision Sciences, Kellogg School of Management, Northwestern University, 1998-2001
Visiting Fellow, Stanford University, 1996-1998
Acting Instructor and Teaching Affiliate, Stanford University, 1995-1996

Honors and Awards
Executive MBA Program Outstanding Teaching Awards, Kellogg School of Management, 2012, 2011, 2009
L.G. Lavengood Outstanding Professor of the Year Award, Kellogg School of Management, 2002

Print Research
Research Interests
Mathematical economics, in particular general equilibrium models involving time and uncertainty, asset pricing, mathematical programming

Articles
Schmedders, Karl, Johannes Brumm, Michael Grill and Felix Kubler. Forthcoming. Collateral Requirements and Asset Prices. International Economic Review.
Judd, Kenneth L., Karl Schmedders and Sevin Yeltekin. 2012. Optimal Rules for Patent Races. International Economic Review. 53: 23-52.
Schmedders, Karl and Felix Kubler. 2010. Tackling Multiplicity of Equilibria with Gröbner Bases. Operations Research. 58: 1037-1050.
Kubler, Felix and Karl Schmedders. 2010. Non-Parametric Counterfactual Analysis in Dynamic General Equilibrium. Economic Theory. 45
Kubler, Felix and Karl Schmedders. 2010. Competitive Equilibria in Semi-Algebraic Economies. Journal of Economic Theory. 145: 301-330.
Schmedders, Karl. 2007. Two-Fund Separation in Dynamic General Equilibrium. Theoretical Economics. 2(2): 135–161.
Earle, Robert L., Karl Schmedders and Tymon Tatur. 2007. On Price Caps under Uncertainty. Review of Economic Studies. 74(1): 93-111.
Herings, P.Jean-Jacques and Karl Schmedders. 2006. Computing Equilibria in Finance Economics with Incomplete Markets and Transaction Costs. Economic Theory. 27(3): 493-512.
Judd, Kenneth L., Felix Kubler and Karl Schmedders. 2006. Reply to: Asset Trading Volume in Infinite-Horizon Economies with Dynamically Complete Markets and Heterogeneous Agents: Comment. Finance Research Letters. 3(2): 102-105.
Kubler, Felix and Karl Schmedders. 2005. Approximate Versus Exact Equilibria in Dynamic Economies. Econometrica. 73(4): 1205-1235.
Citanna, Alessandro and Karl Schmedders. 2005. Excess Price Volatility and Financial Innovation. Economic Theory. 26(3): 559-587.
Judd, Kenneth L., Felix Kubler and Karl Schmedders. 2004. Effects of Asset Market Structure on Welfare and Trading Volume.: 675-694.
Kubler, Felix and Karl Schmedders. 2003. Stationary Equilibria in Asset-Pricing Models with Incomplete Markets and Collateral. Econometrica. 71(6): 1767-1793.
Judd, Kenneth L., Felix Kubler and Karl Schmedders. 2003. Asset Trading Volume with Dynamically Complete Markets and Heterogeneous Agents. Journal of Finance. 58(5): 2203-2217.
Park, Andrew E., John J. Fernandez, Karl Schmedders and Mark S Cohen. 2003. The fibonacci sequence: Relationship to the human hand. Journal of Hand Surgery. 28(1): 157-160.
Schmedders, Karl. 2003. Book Review: Applied Computational Economics and Finance, by Mario J Miranda and Paul L Fackler. Economic Journal. 113: F661-F663.
Kubler, Felix and Karl Schmedders. 2003. Generic Inefficiency of Equilibria in the General Equilibrium Model with Incomplete Asset Markets and Infinite Time. Economic Theory. 22(1): 1-15.
Cohen, Mark S, Andrew E. Park, Karl Schmedders and John J. Fernandez. 2003. In Reply - The Fibonacci Sequence: Relationship to the Human Hand. Journal of Hand Surgery. 28(4): 706.
Kubler, Felix and Karl Schmedders. 2002. Recursive Equilibria in Economies with Incomplete Markets. Macroeconomic Dynamics. 6: 284-306.
Schmedders, Karl. 2001. Monopolistic Security Design in Finance Economies. Economic Theory. 18(1): 37-72.
Kubler, Felix and Karl Schmedders. 2001. Incomplete Markets, Transitory Shocks, and Welfare. Review of Economic Dynamics. 4(4): 747-766.
Kubler, Felix and Karl Schmedders. 2000. Computing Equilibria in Stochastic Finance Economies. Computational Economics. 15(1-2): 145-172.
Judd, Kenneth L., Felix Kubler and Karl Schmedders. 2000. Computing Equilibria in Infinite-Horizon Finance Economies: The Case of One Asset. Journal of Economic Dynamics and Control. 24(5-7): 1047-1078.
Eaves, B.Curtis and Karl Schmedders. 1999. General Equilibrium Models and Homotopy Methods. Journal of Economic Dynamics and Control. 23(9): 1249-1279.
Schmedders, Karl. 1999. A homotopy algorithm and an index theorem for the general equilibrium model with incomplete asset markets. Journal of Mathematical Economics. 32(2): 225-241.
Schmedders, Karl. 1998. Computing Equilibria in the General Equilibrium Model with Incomplete Asset Markets. Journal of Economic Dynamics and Control. 22(8-9): 1375-1401.
Eaves, B.Curtis and Karl Schmedders. 1998. A Cellation of the Grassmann Manifold. Mathematical Programming. 83(1-3): 253-262.
Working Papers
Judd, Kenneth L., Felix Kubler and Karl Schmedders. 2007. Bond Portfolios and Two-Fund Separation in the Lucas Asset-Pricing Model.
Judd, Kenneth L., Felix Kubler and Karl Schmedders. 2007. Bond Ladders and Optimal Portfolios in Dynamic General Equilibrium.
Judd, Kenneth L. and Karl Schmedders. 2006. A Computational Approach to Proving Uniqueness in Dynamic Games.
Earle, Robert L. and Karl Schmedders. 2001. Demand Uncertainty and Risk-Aversion: Why Price Caps May Lead to Higher Prices.
Schmedders, Karl and Molly C. Stephens. 2000. A Collection of Case Studies in Management Science.
Judd, Kenneth L., Felix Kubler and Karl Schmedders. 1999. Incomplete Asset Markets with Heterogeneous Tastes and Idiosyncratic Income.
Book Chapters
Schmedders, Karl. 2008. "Numerical Optimization Methods in Economics." In New Palgrave Dictionary of Economics, edited by Lawrence Blume and Steven N. Durlauf, London, UK: Palgrave MacMillan, 2nd edition.
Judd, Kenneth L., Felix Kubler and Karl Schmedders. 2003. "Computational Methods for Dynamics Equilibria with Heterogeneous Agents." In Advances in Economics and Econometrics, edited by Mathias Dewatripont, Lars Peter Hansen, Stephen J. Turnovsky, vol. 3, 243-290. Cambridge, UK: Cambridge University Press.
Judd, Kenneth L., Felix Kubler and Karl Schmedders. 1999. "The Impact of Portfolio Constraints in Infinite-Horizon Incomplete-Markets Models." In The Theory of Markets, edited by P.J.J. Herings, G. van der Laan, A. Talmon, Amsterdam: North-Holland.
Hens, Thorsten, Karl Schmedders and Beate Voss. 1999. "On Multiplicity of Competitive Equilibria when Financial Markets are Incomplete." In The Theory of Markets, edited by P.J.J. Herings, G. van der Laan, A. Talmon, Amsterdam: North-Holland.
Other
Schmedders, Karl. "Book Review." The Economic Journal, November.
Schmedders, Karl and Molly C. Stephens. "Time to Update Teaching Cases." OR/MS Today, February.
Books
Schmedders, Karl and Molly C. Stephens. 2002. 20 Case Studies. Irwin/McGraw-Hill, Second Edition.
Schmedders, Karl and Molly C. Stephens. 2001. 20 Case Studies. McGraw-Hill, Eighth Edition.
Schmedders, Karl and Molly C. Stephens. 2001. 20 Case Studies. McGraw-Hill, Seventh Edition.
Schmedders, Karl and Molly C. Stephens. 2000. 20 Case Studies. Irwin/McGraw-Hill, First Edition.
Cases
Schmedders, Karl, Peter Eso and Peter Klibanoff. Where Art Meets Science: Predicting Movie Grosses.
Schmedders, Karl, Charlotte Snyder and Ute Schaedel. 2012. Hollywood Rules. Case 5-111-012 (KEL700).
Schmedders, KarlRussell Walker and Michael Stritch. 2010. Arbor City Community Foundation (B): Managing Good Fortune. Case 5-310-502(B) (KEL586).
Schmedders, Karl and I. Campbell Lyle. 2007. Fueling Sales at EuroPet. Case 5-307-505 (KEL368).
Schmedders, Karl, Charlotte Snyder and Sophie Tinz. 2013. Germany’s Bundesliga: Does Money Score Goals?. Case 5-113-002 (KEL754).
Rott, Armin and Karl Schmedders. 2008. Spiegel Online. Case 5-108-007 (KEL330).
Schmedders, Karl and Markus Schulze. 2016. Solid as Steel: Production Planning at thyssenkrupp. Case 5-215-250 (KEL942).
Schmedders, Karl, Patrick Johnston and Charlotte Snyder. 2008. Milk and Money. Case 5-407-754 (KEL343).
Schmedders, Karl, Peter Eso, Peter Klibanoff and Graeme Hunter. 2006. Orangia Highways (A). Case 5-106-007(A) (KEL185).
Schmedders, KarlRussell Walker and Michael Stritch. 2010. Arbor City Community Foundation (A): The Foundation. Case 5-310-502(A) (KEL585).
Schmedders, Karl, Peter Eso, Peter Klibanoff and Graeme Hunter. 2006. Orangia Highways (B). Case 5-106-007(B) (KEL186).
Schmedders, Karl, Peter Eso, Peter Klibanoff and Graeme Hunter. 2007. Pedigree vs. Grit: Predicting Mutual Fund Manager Performance. Case 5-407-755 (KEL396).

 
Print Teaching
Teaching Interests
Probability and statistics