Kellogg School of Management at Northwestern University
Cheap Talk

Mon, Oct 9

That Rizzo Bloop

In the bottom of the 8th inning of tonight’s game 3 of the NLDS, Anthony Rizzo blooped a single to shallow left and Leonys Martin scored what proved to be the winning run.  The noteworthy thing is that Martin scored... More →

Cheap Talk

Thu, Jul 27

The Skinny

You are in a negotiation and you are offered X. You really want both X and Y but you have just been given the option to take X now and then continue negotiating for Y. In this story you are... More →

Cheap Talk

Sat, Jul 22

The Marathon Game

A one player extensive-form game with perfect information.  The player’s name is Zeno. The game has an infinite horizon.  For every non-negative integer N there is a node at which Zeno chooses either to Continue or Quit.  If he Quits... More →

Code Red

Tue, Jul 18

The Anthem-Cigna Merger

This blog was written by David Dranove, who served as the Department of Justice expert economist in this matter.  Dranove’s opinions do not necessarily reflect those of Craig Garthwaite or the DOJ. Introduction On May 12, 2017, Anthem Inc. announced... More →

Cheap Talk

Tue, Jul 11

How Junior Got Played

On Saturday The New York Times published the story that Donald Trump Jr together with Paul Manafort and Jared Kushner met in Trump Tower with a Russian Lawyer.  That was basically the entire content of the story in terms of new... More →

Harry Kraemer

Tue, Jun 20

College Reunion Weekend

I had the opportunity this past weekend to attend my Lawrence University college reunion in Appleton, Wisconsin. It was a fantastic opportunity to spend time with classmates and professors that I had not seen in many years. It was a... More →

Cheap Talk

Sun, Jun 11

Model Up

Everyone who has armchair-theorized why movie theaters don’t sell assigned seats in advance is now obligated to explain why this has changed and how that’s consistent with their model. I will start.  My theory was based on the value of... More →

Cheap Talk

Thu, Jun 8

Comey and Other Skeletons

The anticlimax that is/will be the Comey testimony proves something I have always thought about skeletons in the closet. They should be released early when not everyone is paying attention. The premise is that outrage is something that needs to... More →

Cheap Talk

Wed, May 17

The Long Game

Watch for the key leading indicator of impending Presidential downfall:  the Vice President going silent.  We will reach a point where the VP’s objective switches from defending the President to preserving his own viability as President.  Right around that turning... More →

Cheap Talk

Tue, May 9

Health Insurance And Flood Insurance

This paper by Finkelstein, Hendren, and Shepard finds that the uninsured have such a low willingness to pay for health insurance that they wouldn’t even cover the costs they impose on insurers: But for our entire in-sample distribution – which spans... More →