July 2018

BIRGER WERNERFELT

J. C. Penney Professor of Management

MIT Sloan School of Management

MASSACHUSETTS INSTITUTE OF TECHNOLOGY

E62-532, 77 Massachusetts Avenue

Cambridge, MA 02139

bwerner@mit.edu

 

EDUCATION:

 Harvard University, DBA (Managerial Economics), 1974-76

University of Copenhagen, MA (Economics), 1971-74

 University of Copenhagen, BA (Philosophy), 1970-74

 

PREVIOUS POSITIONS:

 University of Copenhagen, Department of Economics,

        Visiting Professor of Economics, 2010-11

Northwestern University, J.L. Kellogg Graduate School of Management

                     Associate Professor of Strategy (with tenure), 1985-89

 University of Michigan, Graduate School of Business Administration

                    Assistant Professor of Policy and Control, 1981-85

 University of Copenhagen, Department of Economics

                     Research Fellow in Mathematical Economics, 1978-81

 A/S Creole

         Vice President, Strategic Planning, 1976-78

  

HONORS AND AWARDS:

Lecturer, European School on New Institutional Economics, Corsica, May 2014

Doctorate, Honoris Causa, Copenhagen Business School, 2012

Keynote speaker, DRUID 2011

Highly Cited Author, Economics/Business, ISI

 Fellow of the International Academy of Management

 Fellow of the World Innovation Foundation

 Who's Who Among Executives and Professionals, first listing in Honors Ed, 2008

 Who’s Who in America, first listing in 61st Ed, 2007

 Who’s Who in American Education, first listing in 7th Ed, 2006

 Who’s Who in Science and Engineering, first listing in 8th Ed, 2005

 Who’s Who in Economics, first listing in 4th Ed, 2003

 Pashigian Lecturer, University of Chicago, 2002 

Hightower Distinguished Lecturer, Emory University, 1998

 Finalist, J.D.C. Little Best Paper Award, INFORMS College of Marketing, 1997.

 Winner, Strategic Management Society/Wiley Prize, 1994.

 Finalist, J.D.C. Little Best Paper Award, INFORMS College of Marketing, 1994.

 Honorable Mention, O’Dell Award, Journal of Marketing Research, 1992.

 Finalist, J.D.C. Little Best Paper Award, TIMS College of Marketing, 1991.

 Best paper, Business Policy and Planning, Academy of Management, 1988.

  

BOOK

Adaptation, Specialization, and the Theory of the Firm: Foundations of the Resource-based View, Cambridge University Press, 2016.

 

JOURNAL ARTICLES (Economics, Marketing, Mathematics, Strategic Management)

All articles are the sole copyright of the respective publishers.  Materials are provided for educational use only.  

 

Economics

The Comparative Advantages of Firms, Markets, and Contracts: A Unified Theory”, Economica, 82, no. 236, April, pp. 350-67, 2015.

“Inefficient Pre-Bargaining Search”, Journal of Institutional and Theoretical Economics, 168, no. 2, June, pp. 211 - 23, 2012.

“On the Grouping of Tasks into Firms: Make-or-Buy with Interdependent Parts”, (with Sharon Novak), Journal of Economics and Management Strategy, 21, no. 1, Spring, pp. 53 -77, 2012.

“Costs of Implementation: Bargaining Costs Versus Allocative Efficiency”, (with Boris Maciejovsky), Journal of Economic Behavior and Organization, 77, no. 3, March, pp. 318 – 25, 2011.

 “Bargaining Before or After Communication?", Journal of Institutional and Theoretical Economics, 164, no. 2, June, pp. 211-229, 2008.

 “Renegotiation Facilitates Contractual Incompleteness”, Journal of Economics and Management Strategy, 16, no. 4, Winter, pp. 893-910, 2007.

 “Delegation, Committees, and Managers”, Journal of Economics and Management Strategy, 16, no. 1, Spring, pp. 35-51, 2007.

 “Determinants of Asset Ownership: A Study of the Carpentry Trade” (with Duncan I. Simester), Review of Economics and Statistics, 87, no. 1, February, pp. 50-58, 2005.

 “Robust Incentive Contracts”, Journal of Institutional and Theoretical Economics, 160, no. 4, December, pp. 545-54, 2004.

  “Organizational Languages”, Journal of Economics and Management Strategy, 13, no. 3, Fall, pp. 461-72, 2004.

  “Governance of Adjustments”, Journal of Business, 77, no. 2, Part 2, April, pp. S3-S24, 2004.

 “Why Should the Boss Own the Assets?”, Journal of Economics and Management Strategy, 11, no. 3, Fall, pp. 473-85, 2002.

  “On the Nature and Scope of the Firm: An Adjustment-Cost Theory”, Journal of Business, 70, no. 4, October, pp. 489-514, 1997.  Reprinted in The Theory of The Firm: Critical Perspectives, ed. Nicolai Foss, New York, NY: Routledge, 2000.

 “Comment on ‘Monitoring Agents with Other Agents’ by Hal R. Varian”, Journal of Institutional and Theoretical Economics, 146, no. 1, March, pp. 177-79, 1990.

  “Tacit Collusion in Differentiated Cournot Games”, Economics Letters, 29, no. 4, April, pp. 303-06, 1989.

 “Reputation, Monitoring and Effort”, Information Economics and Policy, 3, no. 3, September, pp. 207-18, 1988.

 “Diversification, Ricardian Rents, and Tobin’s q”, (with Cynthia A. Montgomery), RAND Journal of Economics, 19, no. 4, Winter, pp. 623-32, 1988.  Reprinted in Resources, Firms, and Strategies: A Reader, ed. Nicolai Foss, Oxford, UK: Oxford University Press, 1997.

 “Umbrella Branding as a Signal of New Product Quality: An Example of Signaling by Posting a Bond”, RAND Journal of Economics, 19, no. 3, Autumn, pp. 458-66, 1988.

 “General Equilibrium with Real Time Search in Labor and Product Markets”, Journal of Political Economy, 96, no. 3, August, pp. 821-31, 1988.

 “Tobin’s q and the Importance of Focus in Firm Performance”, (with Cynthia A. Montgomery), American Economic Review, 78, no. 1, March, pp. 246-50, 1988. Reprinted in Corporate Strategy, ed. Margarethe Wiersema and Joe Beck, Cheltenham, UK: Edward Elgar Publishing, 2011.

 “Product Line Rivalry: Note”, American Economic Review, 76, no. 4, September, pp. 842-44, 1986.

 “Brand Loyalty and User Skills”, Journal of Economic Behavior and Organization, 6, no. 4, December, pp. 381-85, 1985.

 “Stagflation, New Products and Speculation”, Journal of Macroeconomics, 6, no. 3, Summer, pp. 295-309, 1984.

 “Consumers with Differing Reaction Speeds, Scale Advantages and Industry Structure”, European Economic Review, 24, no. 2, March, pp. 257-70, 1984.

  

Marketing

On the Role of the RBV in Marketing”, Journal of the Academy of Marketing Science, 42, no. 1, January, pp. 22-23, 2014.

On Brand Extension as a Signal of Product Quality”, Marketing Science, 32, no. 5, September-October, pp. 771-72, 2012.

 “Class Pricing”, Marketing Science, 27, no. 5, Sep-Oct, pp. 755 - 63, 2008.

 “Product Development Resources and the Scope of the Firm”, Journal of Marketing, 69, no. 2, April, pp. 15-23, 2005.

 “Implementing Quality Improvement Programs Designed to Enhance Customer Satisfaction: Quasi-Experiments in the United States and Spain” (with Duncan I. Simester, John R. Hauser, and Roland Rust), Journal of Marketing Research, 37, no.1, February, pp. 102-112, 2000.

 “Bounded Rationality Modeling”, (with Bertrand Munier, Reinhard Selten et al), Marketing Letters 10, no. 3, August, pp. 233-48, 1999.

 Sidepayments in Marketing” (with John R. Hauser and Duncan I. Simester).  Marketing Science, 16, no. 3, Summer, pp. 246-55, 1997.  Finalist, 1997 J.D.C. Little Best Paper Award, INFORMS College of Marketing.

 “The Role of Inference in Context Effects: Inferring What You Want from What is Available” (with Drazen Prelec and Florian Zettelmeyer), Journal of Consumer Research, 23, no. 1, June, pp.118-25, 1997.

 “Internal Customers and Internal Suppliers” (with John R. Hauser and Duncan I. Simester), Journal of Marketing Research, 33, no. 3, August, pp. 268-80, 1996.

 “Efficient Marketing Communication: Helping the Customer Learn”Journal of Marketing Research, 33, no. 2, May, pp. 239-46, 1996.

 “A Rational Reconstruction of the Compromise Effect”, Journal of Consumer Research, 21, no. 4, March, pp. 627-33, 1995.

 “Customer Satisfaction Based Incentive Systems” (with John R. Hauser and Duncan I. Simester), Marketing Science, 13, no. 4, Winter, pp. 327-50, 1994.  Finalist, 1994 J.D.C. Little Best Paper Award, INFORMS College of Marketing.

 “An Efficiency Criterion for Marketing Design”, Journal of Marketing Research, 31, no. 4, November, pp. 462-70, 1994.

 “Selling Formats for Search Goods”, Marketing Science, 13, no.  3, Summer, pp. 298-309, 1994.

 “On the Function of Sales Assistance”, Marketing Science, 13, no. 1, Winter, pp. 68-82, 1994.

 “Risk Reduction and Umbrella Branding” (with Cynthia A. Montgomery), Journal of Business, 65, no. 1, January, pp. 31-50, 1992.

 “Sources of Superior Performance: Market Share vs. Industry Effects in the U.S. Brewing Industry”, (with Cynthia A. Montgomery) Management Science, 37, no. 8, August, pp. 954-59, 1991.

 “Brand Loyalty and Market Equilibrium”, Marketing Science, 10, no. 3, Summer, pp. 229-45, 1991.  Finalist, 1991 J.D.C. Little Best Paper Award, TIMS College of Marketing.

 “An Evaluation Cost Model of Consideration Sets” (with John R. Hauser), Journal of Consumer Research, 16, no. 4, March, pp. 393-408, 1990.

 “Advertising Content When Brand Choice is a Signal”, Journal of Business, 63, no. 1, January, pp. 91-98, 1990.

 “The Competitive Implications of Relevant-Set/Response Analysis”, (with John R. Hauser), Journal of Marketing Research, 26, no. 4, November, pp. 391-405, 1989.

 “Credible Delegation by Oligopolists: An Example from Distribution Channel Management” (with Anne T. Coughlan), Management Science, 35, no. 2, February, pp. 226-39, 1989.

 “A Model for Customer Complaint Management”, (with Claes Fornell), Marketing Science, 7, no. 3, Summer, pp. 287-98, 1988. Abbreviated version in Incentive, September 1988.

 “Existence and Uniqueness of Price Equilibrium in ‘Defender”’ (with John R. Hauser), Marketing Science 7, no. 1, Winter, pp. 92-93, 1988.

 “Defensive Marketing Strategy by Customer Complaint Management: A Theoretical Analysis”, (with Claes Fornell), Journal of Marketing Research 24, no. 4, November, pp. 337-46, 1987.  Honorable mention, 1992 O’Dell Award, Journal of Marketing Research.

 “Competitive Price and Quality Under Asymmetric Information”, (with Gerard J. Tellis), Marketing Science 6, no. 3, Summer, pp. 240-53, 1987.

 “A Special Case of Dynamic Pricing Policy”, Management Science 32, no. 12, December, pp. 1562-66, 1986.

 “Consumption Experience and Sales Promotion Expenditure” (with Claes Fornell and William T. Robinson) Management Science 31, no. 9, September, pp. 1089-1105, 1985.

 “The Dynamics of Prices and Market Shares Over the Product Life Cycle”, Management Science 31, no. 8, August, pp. 928-39, 1985.

 “To Brand or Not to Brand? A Theoretical and Empirical Question” (with David E.M. Sappington), Journal of Business 58, no. 3, July, pp. 279-93, 1985.

  

Mathematics

 “On the Existence of a Nash Equilibrium Point in N-Person Nonzero Sum Stochastic Jump Differential Games”, Optimal Control Applications and Methods, 9, no. 4, October-December, pp. 449-56, 1988.

 “Uniqueness of Nash Equilibrium for Linear-Convex Stochastic Differential Games”, Journal of Optimization Theory and Applications, 53, no. 1, April, pp. 133-38, 1987.

 Semifuzzy Games”, International Journal for Fuzzy Sets and Systems, 19, no. 1, May, pp. 21-28, 1986.

 

Strategic Management

“A Possible Micro-Foundation for the RBV and Its Implications”. Strategic Management Review, 1, no. 1, forthcoming, 2020.

“Foreword”, in Nicolai J. Foss, Organizational Leadership: New Studies in Strategy, Entrepreneurship, Knowledge, and Methodology.  Copenhagen, Denmark: DJOEF Publishing, 2015.

“Small Forces and Large Firms: Foundations of the RBV”, Strategic Management Journal, 34, no. 6, pp. 635-43, June, 2013.

 “The Use of Resources in Resource Acquisition”, Journal of Management, 37, no. 5, September, pp. 1369-73, 2011.

 “Why do Firms Tend to Become Different?”, in Constance Helfat (ed.), Handbook of Organizational Capabilities, Malden, MA and Oxford, UK: Blackwell,  Chapter 9, pp. 121-33, 2003.

 “Foreword”, in Nicolai J. Foss (ed.), Resources, Firms, and Strategies: A Reader, Oxford, UK: Oxford University Press, 1997.

 “Resource-Based Strategy in a Stochastic Model”, in Cynthia A. Montgomery (ed.), Resource-Based and Evolutionary Theories of the Firm, Norwell, MA, and Dordrecht: Kluwer Academic, pp. 133-46, 1995.

 “The Resource-based View of the Firm: Ten Years After”, Strategic Management Journal, 16, no. 3, March, pp. 171-75, 1995.

 “Strategy and the Research Process: Reply” (with Cynthia A. Montgomery and Srinivasan Balakrishnan), Strategic Management Journal, 12, no. 1, January, pp. 83-84, 1991.

 “Why Do Firms Reduce Business Risk?” (with Raphael H. Amit), Academy of Management Journal, 33, no. 3, September, pp. 520-33, 1990.

 “From Critical Resources to Corporate Strategy”, Journal of General Management, 14, no. 3, Spring, pp 4-12, 1989. Chosen as one of five articles to be reprinted in Journal of General Management: Through the Years, 2008.

 “Determinants of Firm Performance: The Relative Importance of Economic and Organizational Factors” (with Gary S. Hansen), Strategic Management Journal 10, no. 5, September-October, pp. 399-411, 1989.

 “Strategy Content and the Research Process: A Critique and Commentary”, (with Cynthia A. Montgomery and Srinivasan Balakrishnan), Strategic Management Journal, 10, no. 2, March-April, pp. 189-97, 1989.

 “The Link Between Resources and Types of Diversification: Theory and Evidence”, (with Sayan Chatterjee), Strategic Management Journal, 12, no. 1, January, pp.33-48, 1991. A substantially different version entitled, “Related or Unrelated Diversification: A Resource-based Approach”, is in Proceedings of the Academy of Management, 1988, pp. 7-11.  Best Paper, Business Policy and Planning, Academy of Management National Meeting, 1988.

 “What is an Attractive Industry?” (with Cynthia A. Montgomery) Management Science, 32, no. 10, October, pp. 1223-30, 1986. Reprinted in Corporate Strategy (Ed. Jeffrey A. Krug), London, UK : Sage Publications, 2008.

 “Technical Change, Competition and Vertical Integration” (with Srinivasan Balakrishnan), Strategic Management Journal, 7, no. 4, July-August, pp. 347-59, 1986.

 “The Relation Between Market Share and Profitability”, Journal of Business Strategy, 6, no. 4, Spring, pp. 67-74, 1986.

 “The Capital Asset Pricing Model and Strategic Planning”, Management Science, 31, no. 4, April, pp. 510, 1985.

 “Competitive Strategy Under Uncertainty” (with Aneel Karnani) Strategic Management Journal, 8, no. 2, March-April, pp. 187-194, 1987. Another version with the same title is in Proceedings of the Academy of Management, 1984, pp. 42-46 and in Administrative World, no. 5, pp. 137-41, 1988 (in Chinese).

 “Multiple Point Competition” (with Aneel Karnani), Strategic Management Journal, 6, no. 1, January-March, pp. 87-96, 1985. Another version with the same title is in Proceedings of the Academy of Management, 1983, pp. 27-31.

 “A Resource-based View of the Firm”, Strategic Management Journal 5, no. 2, April-June, pp. 171-80, 1984.  Winner, 1994 Strategic Management Society/Wiley Best Paper Prize.  Reprinted in Resources, Firms, and Strategies: A Reader, ed. Nicolai Foss, Oxford, UK: Oxford University Press, 1997; in Alternative Theories of the Firm, ed. Richard N. Langlois, Tony Fu-Lai Yu, and Paul L. Robertson, Cheltenham, UK: Edward Elgar Publishing, 2001; in The Economics of Business Strategy, ed. John Kay, Cheltenham, UK: Edward Elgar Publishing, 2002; and in Strategic Management, ed. J. Birkinshaw, Cheltenham, UK: Edward Elgar Publishing, 2004.

  

Reviews

 Review of R. K. Morck, Concentrated Corporate Ownership in Journal of Economic Literature, 40, no. 1, March, pp. 181-82, 2002.

Review of R. Selten, Models of Strategic Rationality in Managerial and Decision Economics, 11, no. 1, February, pp. 69-70, 1990.

 

Manuscripts

On the Existence and Nature of Multi-Business Firms: Double Specialization and Neighboring Businesses”, Working Paper, M.I.T. Sloan School of Management, Massachusetts Institute of Technology, 2018.

“On the Internalization of Advertising and Marketing Services: An Adaptation Cost Analysis” (with Alvin Silk and Shuyi Yu), Working Paper, MIT Sloan School of Management, 2018.

“How Do Successful Scholars Get Their Best Research Ideas?” (with Cathy Cao, Xinyu Cao, Matthew Cashman, Madhav Kumar, Artem Timoshenko, Jeremy Yang, Shuyi Yu, Jerry Zhang, and Yuting Zhu). MIT Sloan School of Management, 2018.

 

 

PROFESSIONAL ACTIVITIES:

Program Committee, Society of Institutional and Organizational Economics Conference, 2017.

Coeditor, Journal of Economics and Management Strategy, 2007-16. 

Program Committee, International Industrial Organization Conference, Boston, 2015;   Philadelphia, 2016: Boston, 2017.

          Panel Member, European Research Council, 2007-2011.

          Advisory Board, Quantitative Marketing and Economics, 2003-     

          Area Editor, Editorial Board, Marketing Science, 1995-97, 1990-2001.

          Department Editor, Associate Editor, Management Science, 1987-94, 1997-00.

          Editorial Board, Strategic Management Journal, 1986-06.

          Editorial Board, Journal of Marketing Research, 1996-98.

 

Ad hoc referee for:

 Economics

 American Economic Review, Canadian Journal of Economics, Eastern Economic Journal, Econometrica, Economic Inquiry, Economic Journal, International Economic Review, International Journal of Industrial Organization, Israel Science Foundation, Journal of Development Economics, Journal of Economic Behavior and Organization, Journal of Economic Theory, Journal of Economics (Zeitschrift fur Nationalokonomie), Journal of Economics & Management Strategy, Journal of the European Economic Association, Journal of Industrial Economics, Journal of Institutional and Theoretical Economics, Journal of Law and Economics, Journal of Law, Economics, and Organization, Journal of Macroeconomics, Journal of Political Economy, Journal of Public Economics, Managerial and Decision Economics, National Science Foundation, Quarterly Journal of Economics, Quarterly Review of Economics and Business, RAND Journal of Economics, Review of Economic Studies, Review of Economics and Statistics, Review of Industrial Organization, Scandinavian Journal of Economics, Social Science and Humanities Research Council of Canada.

 Marketing

 International Journal of Research in Marketing, Journal of Business, Journal of Consumer Research, Journal of Marketing, Journal of Marketing Research, Journal of Public Policy and Marketing, Journal of Retailing, Management Science, Marketing Science, Sloan Management Review.

 Strategic Management

 Academy of Management Journal, Academy of Management Review, California Management Review, Industrial and Corporate Change, Journal of Management, Journal of Management Studies, Management Science, Organization Science, Research Policy, Strategic Management Journal 

Miscellaneous

 Information Systems Research, Mathematics of Operations Research, Operations Research, Optimal Control Applications and Methods.

 

 Member of:

American Economic Association, INFORMS College of Marketing, Strategic Management Society

  

DISSERTATION COMMITTEES:

Marketing

Song Lin (Chair), “Consumer Heterogeneity, Uncertainty, and Product Policies”, 2015; first job at Hong Kong University of Science and Technology. (Winner, ISMS Doctoral Dissertation Proposal Award.)

 Matthew Selove (Chair), “Three Essays on Strategic and Tactical Issues in Product Design”, 2010; first job at the University of Southern California, now at Chapman University. (Winner, John A. Howard Dissertation Award of the American Marketing Association.)

 Robert Zeithammer (Member), “Forward-Looking Bidders in Sequential Auctions”, 2003; first job at The University of Chicago, now tenured at the University of California at Los Angeles.

Dina Mayzlin (Chair), “Word of Mouth as a Marketing Tool: Influencing and Learning from Consumer Conversations”, 2002; first job at Yale University, now full professor at the University of Southern California. (Winner, John A. Howard Dissertation Award of the American Marketing Association.)

 David Godes (Chair), “Essays on Marketing and the Organization”, 2000; first job at Harvard University, now full professor at the University of Maryland. (Winner, 2000 Zenon & Clotilde Zannetos Thesis Prize of MIT.)

 Florian Zettelmeyer (Co-chair), "Three Essays on Strategic and Organizational Uses of Information in Marketing", 1996; first job at the University of Rochester; now full professor at Northwestern University.  (Honorable Mention, 1995 Dissertation Proposal Award of the Marketing Science Institute.)

 Eric T. Anderson (Co-chair), “Essays in Pricing and Advertising”, 1995; first job at the University of Rochester; now full professor at Northwestern University.  (Honorable Mention, 1994 Dissertation Proposal Award of the Marketing Science Institute.)

 Duncan I. Simester (Chair), “Analytical Essays on Marketing”, 1993; first job at the University of Chicago; now full professor at the Massachusetts Institute of Technology.  (Winner, 1992 Dissertation Proposal Award of the Marketing Science Institute.)

 Miguel Villas-Boas (Chair), “On Promotions and Advertising Policies: A Strategic Approach”, 1991; first job at the University of California at Berkeley; now full professor there.  (Finalist, 1993 J.D.C. Little Best Paper Award, 1993 Frank Bass Best Dissertation Paper Award, TIMS College of Marketing.)

Gerald J. Tellis (Member), “Consumer Information, Marketing Strategy, and Market Share”, 1983; first job at the University of Iowa; now full professor at the University of Southern California.

Strategic Management

 Gary S. Hansen, “Determinants of Firm Performance: An Integration of Economic and Organizational Factors”, 1987; first job at the University of Washington at Seattle; now tenured at the University of California at Santa Barbara (Winner, 1987 Dissertation award of the Academy of Management)

 Sayan Chatterjee, “The Diversification Decision: The Economics of the Manager’s Perspective”, 1985; first job at Purdue University; now full professor at Case Western University (Finalist, 1985 Dissertation award of the Academy of Management)

 Srinivasan Balakrishnan, “A Dynamic Analysis of the Vertical Integration Strategy”, 1983; first job at UCLA; now retired from the University of Minnesota at Minneapolis (Finalist, 1983 Dissertation award of the Academy of Management)

  

Accounting

 John Cheh, “Incentive Effects of Inter-Agent Monitoring: Implications for Responsibility Accounting and Auditor-Consultant Interaction”, 1986; first job at New York University; now full professor at University of Akron.

                                  

CURRENT RESEARCH INTERESTS:

 Theory of the Firm

 Foundations of Business Strategy

 Foundations of Marketing