Richard Schmalensee

Advisory Board Member

(617) 247-0029


Antitrust and Competition Policy; Financial Regulation

BS in Economics, Politics, and Science from MIT in 1965; Doctorate in Economics from MIT in 1970

Richard (Dick) Schmalensee is an Advisory Board Member with Global Economics Group, John C. Head III Dean, Emeritus, of the MIT Sloan School of Management, and Howard W. Johnson Professor of Management and Economics at MIT.

Professor Schmalensee has long been a leader in industrial organization economics and its application to managerial and public policy issues, particularly antitrust, regulatory, and environmental policy. He is the author or co-author of 11 books and over 110 articles and served as co-editor of volumes 1 and 2 of the Handbook of Industrial Organization, a standard reference.

As a consultant to private firms and government agencies, including the Bureau of Economics of the U.S. Federal Trade Commission and the Antitrust Division of the U.S. Department of Justice on the 1992 Merger Guidelines, Dr. Schmalensee has testified in both federal and state courts, before several congressional committees, and before the Federal Trade Commission.

Dr. Schmalensee served as a Member of the U.S. President’s Council of Economic Advisers from 1989 through 1991, where he had primary responsibility for domestic and regulatory policy, including environmental and telecommunications policy, and for U.S. assistance to Central and Eastern Europe.

Prior to his affiliation with Global Economics Group, Dr. Schmalensee was a Special Consultant with NERA Economic Consulting, 1981-89 and 1991-2004 and a Director with LECG LLC, 2004-11.

He received a BS in economics, politics, and science from MIT in 1965 and a doctorate in economics from MIT in 1970.



Antitrust and Regulation
• Testimony and expert reports on numerous cases in the telecom industry, including testimony on behalf of a major telecom company regarding its application to enter the long-distance telephone market in California, costs of asymmetric regulation, and competitive effects of proposed mergers.

• Debit card regulatory proceedings before the Federal Reserve Board on behalf of various financial institutions.

• Deposition and trial testimony in US v. Microsoft on competitive impacts of challenged conduct.

• Deposition and trial testimony in cases involving payment system conduct and ATM interchange fees.



• Keynote Speaker, World Congress of Environmental and Resource Economists, 2010

• Member, National Commission on Energy Policy, 2006-2010

• Member: International Academy of Management, 1998-

• Fellow: American Academy of Arts and Sciences, 1995-

• Member: Executive Committee, American Economic Association, 1993-95

• Research Associate: National Bureau of Economic Research, 1992-

• Director: Long Island Lighting Company, 1992-98; MIT Press, 1994-2007; International Securities Exchange, 2000-2009; MFS Investment Management, 2002-04; International Data Group, 2004-; Resources for the Future, 2009-


• Entry Deterrence in the Ready-to-Eat Breakfast Cereal Industry, Bell Journal of Economics, 9 (Autumn 1978): 305-327.

• Another Look at Market Power, Harvard Law Review, 95 (June 1982): 1789-1816.

• Markets for Power: An Analysis of Electric Utility Deregulation (with P.L. Joskow), Cambridge: MIT Press, 1983.

• Do Markets Differ Much? American Economic Review, 75 (June 1985): 341-351.

• Economic Aspects of Payment Card Systems and Antitrust Policy Toward Joint Ventures (with D.S. Evans)

• Antitrust Law Journal, 63 (Spring 1995): 861-901.

• Paying with Plastic: The Digital Revolution in Buying and Borrowing (with D.S. Evans), Cambridge: MIT Press, 1999. Second edition 2005.

• Antitrust Issues in Schumpeterian Industries, American Economic Review, 90 (May, 2000): 192-96.

• Payment Systems and Interchange Fees, Journal of Industrial Economics, 50 (June 2002): 103-22.

• Sunk Costs and Antitrust Barriers to Entry, American Economic Review, 94 (May 2004): 471-475.

• Invisible Engines: How Software Platforms Drive Innovation and Create Value (with D.S. Evans and A. Hagiu), Cambridge: MIT Press, 2006.

• Pricing Patents for Licensing in Standard-Setting Organizations: Making Sense of FRAND Commitments (with A. Layne-Farrar and A.J. Padilla), Antitrust Law Journal, 74 (2007): 671-706.

• Standard-Setting, Innovation Specialists, and Competition Policy, Journal of Industrial Economics, 57 (September 2009): 526-52.

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