David Dranove

Management and Strategy Department
Walter McNerney Distinguished Professor of Health Industry Management
Professor of Management and Strategy
BA 1977, MBA 1979, Cornell University; PhD 1983, Economics Stanford University

Current Projects

The Effect of Quality Report Cards on Health Care Markets
Hospital Consolidation: Reassessing Performance
Hospital Choice and Competition
A Theory of Utilization Review
DVD vs. DIVX



Representative Publications

"Demand Inducement and the Physician/Patient Relationship," Economic Inquiry (April, 1988).
"Pricing by Non-Profit Institutions: The Case of Hospital Cost Shifting,"Journal of Health Economics (Spring, 1988).
"Medicaid Drug Formulary Restrictions," Journal of Law and Economics (April 1989).
"Is Hospital Competition Wasteful?" (with Mark Shanley and Carol Simon), RAND Journal of Economics (Summer 1992).
"Monopolistic Competition When Price and Quality are Not Perfectly Observable" (with Mark Satterthwaite), RAND Journal of Economics (Winter 1992).
"Physician-Induced Demand for Childbirths" (with Paul Wehner), Journal of Health Economics (Winter 1994).
"Recent Theory and Evidence on Hospital Competition" (with Will White), Journal of Economics and Management Strategy (Spring 1994).
"Do Important Drugs Reach the Market Sooner?" (with David Meltzer), RAND Journal of Economics (Autumn 1994).
"Cost Reduction Versus Reputation Enhancement as Motives for Mergers: The Logic of Multihospital Systems" (with Mark Shanley), Strategic Management Journal (1995).
"Economies of Scale in Non-revenue Producing Cost Centers in Hospitals", Journal of Health Economics (1997).
"Medicaid-dependent Hospitals and Their Patients: How Have They Fared?" (with Will White), Health Services Research (1999).
"Exploiting a Cost Advantage and Coping with a Cost Disadvantage" (with David Besanko and Mark Shanley), Management Science (2001).

Books

The Economics of Strategy (with David Besanko and Mark Shanley), Wiley (1996, 2000).
How Hospitals Survived (with Will White), American Enterprise Institute Press (1999).
The Economic Evolution of American Health Care, Princeton University Press (2000).
Pricing Your Life, Prentice Hall (in process).

General / Consulting

Consult with private and governmental organizations on issues of business strategy and antitrust in health care.
Expert economist for Federal Trade Commission, state antitrust agencies, and private law firms.