Dranove and Satterthwaite win best paper award
Two of the Kellogg
School's distinguished Management & Strategy faculty have
garnered this year's top academic honors at Kellogg, winning
the prestigious Stanley Reiter Best Paper Award.
Dranove, the Walter J. McNerney Distinguished Professor
of Health Industry Management, and Mark
Satterthwaite, the A.C. Buehler Professor of Hospital
and Health Services, earned the recognition for their research
"Is More Information Better? The Effects of 'Report Cards'
on Health Care Providers," published in the June 2003 Journal
of Political Economy. This study examines the ramifications
of public disclosure at the level of the individual doctor
or hospital of patient health outcomes to cardiac bypass surgery.
The paper, co-authored
with Daniel Kessler and Mark McClellan, illustrates how such
disclosure has two effects. It reduces consumer ignorance
of the clinical quality that different surgeons and hospitals
provide, allowing consumers to make more informed decisions.
It also create incentives for surgeons and hospitals to refrain
from treating more severely ill patients, given the potential
negative mark that disappointing outcomes may have on their
The authors concluded
that "these report cards decreased patient and social welfare"
when considered on a short-term horizon, but the data were
less clear over a longer horizon of five or more years.
The Reiter Best
Paper Award was established at the Kellogg School in 2001,
in honor of Stanley Reiter, the Morrison Professor of Economics,
Mathematics and Managerial Economics and Decision Sciences.
A committee of six senior faculty members evaluates submissions
for the award, which is bestowed annually on the academic
article judged "best" among those published by Kellogg professors
in the preceding four years.
Dranove: "It is an honor to be acknowledged by our peers for
our research efforts. It is especially gratifying to receive
this award in light of the high standards set by Stan Reiter
as well as the amazing quality of the research done by previous
prior recipients are: Timothy Feddersen, the Wendell Hobbs
Professor of Managerial Politics (2002 winner); Alvaro Sandroni,
the Mechthild Esser Nemmers Professor of Managerial Economics
and Decision Sciences (2003); and J. Peter Murmann, assistant
professor of management and organizations (2004).