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News & Events

Government shutdown

Kellogg on the shutdown

Kellogg professors Daniel Diermeier, David Besanko and Russell Walker talk government, business and game theory on shutting down the shutdown

By Paul Dailing

10/7/2013 -

As the shutdown stalemate grinds on, closing public services and furloughing government employees, thought leaders from the Kellogg School of Management are sharing their expertise on how to handle the crisis.

  • In the Washington Post, IBM Professor of Regulation and Competitive Practice Daniel Diermeier looks at the governmental imbroglio through the lens of game theory. Diermeier argues that, contrary to the common image of power brokers playing human chess, some of the roots of the shutdown come straight from the U.S. Constitution.
  • Meanwhile, Associate Director of Kellogg’s Zell Center for Risk Research Russell Walker takes a hard look at what the shutdown could mean for private-sector businesses that depend on federal permits and research, asking, “Is Your Business Shutdown Proof?”
  • Finally, Alvin J. Huss Professor of Management and Strategy David Besanko looks at the possible effects if the worst case scenario comes true and the government does default. One by one, Besanko looks at the possible options—and their consequences—if Congress doesn’t raise the borrowing limit.