Kellogg World Alumni Magazine, Winter 2003Kellogg School of Management
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Assistant Professor of Marketing Eric T. Anderson has published “Mind Your Pricing Cues” (with Duncan Simester) in the Sept. 2003 Harvard Business Review. In addition, he has a forthcoming article, “Long-Run Depth of Promotion Depth on New Versus Established Customers: Three Field Studies” (with Duncan Simester) in Marketing Science. “Revisiting Dynamic Duopoly with Consumer Switching Costs” is also forthcoming in the Journal of Economic Theory.

In August, Jeanne Brett, the DeWitt W. Buchanan Jr. Distinguished Professor of Dispute Resolution and Organizations, received the prestigious Academy of Management Distinguished Educator Award. According to the Academy of Management, the award is given annually to an outstanding professor who, “over the course of a career, has made significant contributions in … developing doctoral students, teaching effectively, fostering pedagogical innovations and developing effective methods, structure and designs.” Says Prof. Brett, “Kellogg School PhD alumni who are faculty all over the world helped make this happen.”

Associate Professor of Management and Strategy James Dana and Rakesh Vohra, the John L. and Helen Kellogg Professor of Managerial Economics and Decision Sciences, organized the North American Summer Meeting of the Econometric Society. The event was held in June at the James L. Allen Center. Prof. Dana is also instrumental in organizing the April 2004 Industrial Organization Society Conference, which will be hosted at the Kellogg School. “Both of these conferences are international meetings attended by faculty and PhD students from around the world,” says Dana. The meetings will feature several plenary talks as well as multiple sessions in which faculty present their latest research.

David Dranove, the Walter J. McNerney Distinguished Professor of Health Industry Management, and Mark Satterthwaite, the Earl Dean Howard Professor of Managerial Economics, have been awarded the prestigious 2003 Health Care Research Award from the National Institute for Health Care Management for their research on hospital report cards.

In June, Assistant Professors of Finance Andrea Eisfeldt and Adriano Rampini were awarded a joint research grant from The Searle Fund for Policy Research. Prof. Eisfeldt says the grant is being used to support research on “capital reallocation,” the reallocation of real assets across firms and sectors of the economy. “Capital reallocation is an important form of economic restructuring,” says Eisfeldt. “In our previous research, we have documented that, interestingly, most capital reallocation takes place in booms even though the benefits to restructuring through capital reallocation are actually highest in recessions.” Their ongoing research will attempt to reconcile these two facts, she notes.

Shane Greenstein, the Elinor and H. Wendell Hobbs Distinguished Professor of Management and Strategy, has written “How Did Location Affect Adoption of the Commercial Internet? Global Village, Urban Density and Industry Composition” (with Chris Forman and Avi Goldfarb). The paper is part of the National Bureau of Economic Research working paper series, in which the authors test opposing theories on how urban locations influenced the diffusion of Internet technology. They found evidence (controlling for industry) that participation in the Internet is more likely in rural areas than in urban areas. Learn more at online.

Ranjay Gulati, Michael L. Nemmers Distinguished Professor of Strategy and Organizations, has been listed among the top 10 most-cited researchers in the category of economics and business, according to rankings published by ISI, the Thompson Institute for Scientific Information. Citations are based on work published during the last 10 years.

Robert Korajczyk, the Harry G. Guthmann Distinguished Professor of Finance, has published “Risk Management in Asset Management” (with Gregory Connor) in Modern Risk Management: A History (Risk Publications). Prof. Korajczyk says the paper discusses the role of derivative securities in implementing portfolio strategies. “In particular, it emphasizes their use in separating security-specific active bets from market-wide or sector-wide exposure,” he says. The paper also covers the importance of managing liquidity risk in the portfolio. In addition, Korajczyk was a Gutmann Fellow at the University of Vienna during June.

Accenture ranked Philip Kotler, the SC Johnson & Son Distinguished Professor of International Marketing, among the top 25 management gurus in the world in 2003. Prof. Kotler has published four books this year: Marketing Management, 11th ed. (Prentice-Hall); Marketing A to Z: 80 Concepts Every Manager Needs to Know (John Wiley); Marketing Global Biobrands: Taking Biotechnology to Market (The Free Press, with Francoise Simon); and Lateral Marketing: A New Approach to Finding Product, Market, and Marketing Mix Ideas (John Wiley; with Fernando Trias de Bes).

Associate Professor of Marketing Angela Lee has published “Approach and Avoidance: The Role of Regulatory Fit and Processing Fluency on Message Framing Effects,” Journal of Personality and Social Psychology (forthcoming, with Jennifer L. Aaker).

Clinical Professor of Entrepreneurship Barry Merkin and his wife, Dr. Jasminka Merkin, have worked the past five years to help launch a business school in Croatia. This year, the Croatian Managers’ Association (CROMA) succeeded in opening the Croma Business Academy, which is offering an executive MBA program to a “remarkable group of young, enthusiastic business people,” says Merkin, who has taught classes at the school and who attended the gala opening earlier this year. Merkin says his motivation for helping launch the school comes, in part, from seeing the impact that Croatia’s rampant unemployment — estimated at 28 percent — has had there. “It’s become clear that the sudden arrival of democracy and free markets to former communist countries has created traumatic change,” Merkin says. He believes that the transition to a true, efficient market economy could take a generation or more, which is one reason he was inspired to lend his entrepreneurial leadership to Croma.

Robert Neuschel, professor of corporate governance, has been nominated as International Educator of the Year by the Cambridge, England-based International Biographical Centre.

Assistant Professor of Marketing Christie Nordhielm recently received the 2003 Robert Ferber Award for the best paper published in The Journal of Consumer Research in the past year based on a dissertation. The article appears in the journal’s Dec. 2002 issue and is titled “The Influence of Level of Processing on Advertising Repetition Effects.”

Clinical Assistant Professor Joseph L. Pagliari Jr. has published “Public versus Private Real Estate Equities: A Risk-Return Comparison” (with Kevin Scherer and Richard Monopoli ’02), in the Sept. 2003 issue of The Journal of Portfolio Management. Prof. Pagliari also presented this paper to two major real estate organizations — The National Association of Real Estate Investment Trusts Investor Forum Conference in New York; and The National Council of Real Estate Investment Fiduciaries Annual Conference in Lake Tahoe. The paper began as an independent study project for Monopoli, overseen by Pagliari. This research compares public and private real estate equities from 1981-2001 by controlling for three of the main differences between these investment alternatives: property-type mix, leverage and appraisal smoothing. “We then ran tests to determine statistically whether the restated means and volatilities of the two series were different from one another,” Pagliari says. “The clear answer is that they were not.” He notes that these conclusions hold important implications for portfolio management.

Lawrence Revsine, the John and Norma Darling Distinguished Professor of Financial Accounting, has published the second Canadian edition of his text Financial Reporting & Analysis (Prentice Hall, 2003).

Steven Rogers, the Gordon and Llura Gund Family Professor of Entrepreneurship, was recently elected as a trustee for Williams College, his alma mater. He is also a member of the Visiting Committee, the Harvard Business School’s advisory board.

In September, Clinical Professor of Entrepreneurship and Family Enterprise Lloyd Shefsky addressed the Ernst & Young Journey High Tech and Life Sciences Program in Tel Aviv, which was attended by 1,300 people. Largely agreeing with the claims of 2002 Nobel Laureate Daniel Kahneman, who contends that business professionals are vulnerable to “excessive or delusional optimism because of planning fallacies,” Prof. Shefsky’s presentation offered a differing view of that assessment when applied to entrepreneurs. “I disagreed with Kahneman’s cause, not the effect,” explains Shefsky. “While executives are optimistic because of the intellectual processes of planning fallacies, entrepreneurs are optimistic because of their emotional reactions.” Most interesting, Shefsky reports, is that Kahneman was almost immediately aware of the Kellogg professor’s remarks. “Kahneman was also in Tel Aviv that day, having dinner with his cousin who happened to be in my audience. It’s just one more indication of the global reach of Kellogg.”

Louis W. Stern, the John D. Gray Distinguished Professor of Marketing, was the keynote speaker for the Global Business Development Meeting of the International Finance Corporation (IFC) in Washington, D.C. IFC is the private investment arm of the World Bank Group. Stern discussed “Business Development in the 21st Century.” Also, in July, he delivered the commencement address at Insead’s PhD award ceremony in Fontainebleau, France.

Leigh Thompson, the J.Jay Gerber Distinguished Professor of Dispute Resolution and Organizations, published the second edition of her text Making the Team: A Guide for Managers (Prentice Hall). In addition, Prof. Thompson co-hosted the Kellogg Teams and Group Research Center’s “Conference on Creativity.” The June event brought together top thinkers in the arena of team leadership. Prof. Thompson notes that participants produced some “breakthrough papers on creativity.”

©2002 Kellogg School of Management, Northwestern University