Luke Froeb 2/16/2003

William C. and Margaret M. Oehmig Associate Professor of Entrepreneurship and Free Enterprise

Owen Graduate School of Management
Vanderbilt University
401 21st Avenue South
Nashville, TN 37203

Phone: (615) 343-6009
Fax: (615) 343-7177
luke.froeb@owen.vanderbilt.edu

Education

Stanford University, A.B. (1978), Economics, with honors and academic distinction.
University of Wisconsin, Ph.D. (1983), Econometrics, passed with distinction.

Work

1993-present: Associate Professor of Management, Vanderbilt University.

Managerial economics for MBAs
Managerial economics for Executive MBAs
Regulation, Antitrust & Legal Issues for MBAs
Mathematical Models in Economics, with Steve Tschantz, Math Department.

1986-88, 1990-93: Economist, Antitrust Division, United States Department of Justice.

1989: Kramer Foundation Fellow, The University of Chicago School of Law.

1984-85: Assistant Professor, Department of Economics, Tulane University.

Graduate and undergraduate econometrics
Graduate industrial organization
Undergraduate introductory microeconomics

Recent Talks

05-2002: Swedish Competition Authority, 3-day workshop on Quantitaitve Benefit-Cost Analysis of Mergers

04-2002: Univ. Florida Vertical Restraints and Upstream Horizontal Mergers: Does the Retail Sector Matter?
11-2001: INFORMS Second price auctions with mixtures of power-related distributions
10-2001: FTC & U.S. Dept. Justice Quantitative Benfit-cost Analysis of Mergers.
06-2001: Univ. Oregon Pass-through rates and merger effects
04-2001: St. Olaf, Klebler-Gery Lecture Merger Modeling

Recent Antitrust Consulting

2002 AT&T-Comcast; Princess-Carnival.
2001 Reed Elsevier-Harcourt, Pepsi-Gatorade
2000 Sprint-WorldCom, Brahma-Antarctica, U.S. Department of Justice
1999 Central Parking Systems-Allright
1998 Lockheed-Grumman; Monsanto-American Home Products
1997 U.S. Department of Justice-Antitrust Division (wrote software)
1996 L’Oreal-Maybelline; General Mills-Ralston; Campbell Soup-Van de Kamps

Research (by topic)

Auctions

Working Papers
- Froeb, Luke, Steven Tschantz & Philip Crooke, "Second-price Auctions with Mixtures of Power-related Distributions:" Owen Working paper (REVISED 2/21/01). pdf file
- Tschantz, Steven, Philip Crooke, and Luke Froeb, "Mergers in First vs. Second Price Asymmetric Auctions," Owen Working paper (1997). pdf file
Articles
- Froeb, Luke, Steven Tschantz, and Philip Crooke, and , "Mergers Among Asymmetric Bidders: A Logit Second-price Auction Model," ICFAIAN Journal of Management Research, (forthcoming) Institute of Chartered Financial Analysts of India: New Dehli. pdf file,
- Brannman, Lance, and Luke Froeb, "Mergers, Cartels, Set-Asides and Bidding Preferences in Asymmetric Second-price Auctions," Review of Economics and Statistics, 82(2) (2000) 283-290. pdf file
- Tschantz, Steven, Philip Crooke, and Luke Froeb, "Mergers in Sealed vs. Oral Auctions," International Journal of the Economics of Business, 7(2) (July, 2000) 201-213. pdf file,
- Froeb, Luke, Robert Koyak & Gregory Werden, "What is the Effect of Bid-Rigging on Prices," Economics Letters, 42 (1993) pp. 419-423. Abstract.
Book Chapters
- Froeb, Luke, and Mikhael Shor, "Auctions, Evidence, and Antitrust," in Econometrics in Antitrust, edited by John Harkrider, ABA Section on Antitrust Law, forthcoming.
- Froeb, Luke, and Steven Tschantz, "Mergers Among Bidders with Correlated Values" in Economic Issues in Measuring Market Power--Contributions to Economic Analysis, Vol. 255, edited by Daniel J. Slottje, Amsterdam: North-Holland Publishing, forthcoming.. pdf file

Mergers

Working Papers
- Froeb, Luke and Steven Tschantz, and Gregory Werden, "Vertical Restraints and the Effects of Upstream Horizontal Mergers," Owen Working paper (3/27/02). pdf file
- Froeb, Luke and Steven Tschantz, and Gregory Werden, "Pass Through rates and the Price Effects of Mergers," Owen Working paper (6/25/01). pdf file
- Werden, Gregory, Luke Froeb and Steven Tschantz, "The Effect of Merger Synergies on Consumers of Differentiated Products," Owen Working paper (6/20/01). pdf file
- Froeb, Luke and Steven Tschantz, "How Much Information is Required to Accurately Predict Merger Effects?," Owen Working paper (6/01). pdf file
- Froeb, Luke and Steven Tschantz, "Merger Effects When Firms Compete by Choosing Both Price and Advertising," Owen Working paper (6/20/01). pdf file
Articles
- Werden, Gregory, and Luke Froeb, "The Antitrust Logit Model For Predicting Unilateral Competitive Effects," Antitrust Law Journal, 70(1), (2002).
- Froeb, Luke, Steven Tschantz & Philip Crooke, "Bertrand Competition with Capacity Constraints: Mergers Among Parking Lots," Journal of Econometrics 113(1) (March, 2003) 49-67. pdf file
- Froeb, Luke, and Gregory Werden, "An Introduction to the Symposium on the Use of Simulation in Applied Industrial Organization," International Journal of the Economics of Business, 7(2) (July, 2000) 133-137.
- Crooke, Philip, Luke Froeb, Steven Tschantz, and Gregory Werden "The Effects of Assumed Demand Form on Simulated Post-Merger Equilibria," early pdf draft, Review of Industrial Organization, 15(3), (November, 1999) pp. 205-217.
- Werden, Gregory, and Luke Froeb, "The Entry-Inducing Effects of Horizontal Mergers," Journal of Industrial Economics, 46 (4), (1998) pp. 525-543.
- Froeb, Luke and Gregory Werden, "A Robust Test for Consumer Welfare Enhancing Mergers Among Sellers of a Homogeneous Product," Economics Letters, 58 (1998) pp. 267-269. Abstract.
- Werden, Gregory, Luke Froeb, and Timothy Tardiff, "The Use of the Logit Model in Applied Industrial Organization," International Journal of the Economics of Business, vol. 3, no. 1, (1996) pp. 85-107.
- Werden, Gregory and Luke Froeb, "The Effects of Mergers in Differentiated Products Industries: Structural Merger Policy and the Logit Model," Journal of Law, Economics, & Organization, 10 (1994) pp. 407-426.
- Froeb, Luke, "Evaluating Mergers in Durable Goods Industries," Antitrust Bulletin, 34 (Spring, 1989) 99-119.
Book Chapters

Werden, Gregory, Luke Froeb, and Steven Tschantz, "The Logit Model for Simulating Unilateral Competitive Effects," in Econometrics in Antitrust, edited by John Harkrider, ABA Section on Antitrust Law, forthcoming.
Werden, Gregory, and Luke Froeb, and , "Calibrated Economic Models Add Focus, Accuracy, and Persuasiveness to Merger Analysis" in the Pros and Cons of Merger Control, edited by the Swedish Competition Authority, Swedish Competition Authority, Stockholm, 2002, pdf file.
Froeb, Luke, Timothy Tardiff, and Gregory Werden, "The Demsetz Postulate and the Effects of Mergers in Differentiated Products Industries," Economic Inputs, Legal Outputs: The Role of Economists in Modern Antitrust , London: John Wiley & Sons, edited by Fred McChesney, 1998.
Froeb, Luke, and Gregory Werden, "Simulating Mergers among Noncooperative Oligopolists," in Computational Economics and Finance: Modeling and Analysis with Mathematica, edited by Hal Varian (TELOS, Springer-Verlag) 1996.
Werden, Gregory, and Luke Froeb, "Simulation as an Alternative to Structural Merger Policy in Differentiated Products Industries," chapter 4 in The Economics of the Antitrust Process, edited by Malcolm Coate and Andrew Kleit, Boston: Kluwer Academic Press, 1996.

Law & Economics

Articles
- Froeb, Luke, and Bruce Kobayashi, "Evidence production in Adversarial vs. Inquisitorial Regimes," Economics Letters 70(2), (2001) pp. 267-272. Abstract. pdf file
- Froeb, Luke, and Bruce Kobayashi, "Naive, Biased, yet Bayesian: Can Juries interpret Selectively-Produced Evidence," Journal of Law, Economics, & Organization, vol. 12, no. 1 (1996) 257-276.
- Froeb, Luke, "The Adverse Selection of Cases for Trial," International Review of Law and Economics, 13(3), (June, 1993) 317-324

Patent Damages

Articles
- Werden, Gregory J., Luke M. Froeb, and James Langenfeld, "Lost Profits from Patent Infringement: The Simulation Approach", International Journal of the Economics of Business, 7(2) (July, 2000) 213-227.
- Werden, Gregory J., Luke M. Froeb, and Lucian Wayne Beavers, "Economic Analysis of Lost Profits from Patent Infringement With and Without Noninfringing Substitutes," American Intellectual Property Law Association Quarterly Journal, 27 (1999) pp. 305-333. pdf file
- Werden, Gregory J., Lucian Wayne Beavers, and Luke M. Froeb, "Quantity Accretion--The Mirror Image of Price Erosion from Patent Infringement," Journal of the Patent and Trademark Office Society, 81 (1999) pp. 479-482.

Econometrics

Working Papers
- Froeb, Luke, "An Innovation Variance Ratio Test," Owen working Paper (1996)
Articles
- Crooke, Philip, Luke Froeb, and Steven Tschantz, "Maximum Likelihood Estimation," Mathematica in Education and Research, 8(1) (Winter, 1999) pp. 17-23.
- Cooil, Bruce, and Luke Froeb, "A Difference Estimator for Testing Equality of Variances for Paired Time Series," Journal of Time Series Analysis, 19(3) (May, 1998) pp.285-290.
- Froeb, Luke, & Robert Koyak, "Measuring and Comparing Smoothness in Time Series: The Production Smoothing Hypothesis," Journal of Econometrics, 64 (1994) 97-122.
Book Chapters

Froeb, Luke, "Log Spectral Analysis: Variance Components in Asset Prices," in Computational Economics and Finance: Modeling and Analysis with Mathematica, edited by Hal Varian (TELOS, Springer-Verlag) 1996.

Critiques of Empirical Market Delineation

articles
- Werden, Gregory, and Luke Froeb, "Correlation, Causality, and all that Jazz: the Inherent Shortcomings of Price Tests for Antitrust Market Delineation," Review of Industrial Organization, 8 (June, 1993) 329-354; reprinted in the Journal of Reprints for Antitrust Law and Economics, 28(1) (1999) p. 175.
- Froeb, Luke and Gregory Werden, "The Reverse Cellophane Fallacy in Market Delineation," Review of Industrial Organization, 7 (1992) 241-247.
- Froeb, Luke and Gregory Werden, "Residual Demand Estimation for Market Delineation: Complications and Limitations," Review of Industrial Organization, 6 (1991) 33-48, reprinted in the Journal of Reprints for Antitrust Law and Economics, 28(1) (1999) p. 357.

Critiques of Structure-Performance Studies

articles
- Evans, William, Luke Froeb, and Gregory Werden, "Endogeneity in the Concentration-Price Relationship: Causes, Consequences, and Cures," Journal of Industrial Economics, 41 (September, 1993) 1-8.
- Amel, Dean, and Luke Froeb, "Do Firms Differ Much?," Journal of Industrial Economics, 39 (March, 1991) 23-31.
- Froeb, Luke, and John Geweke, "Long Run Competition in the Post-war U.S. Aluminum Industry," International Journal of Industrial Organization, 5 (1987) 67-78.

Miscellaneous

short articles
- Crooke, Philip, Luke Froeb & Steven Tschantz, "Teaching MBA Students to Compete in Simulated Oligopoly Environments", Interactive Learning: Vignettes from America's Most Wired Campuses, edited by Donald Brown, Bolton, MA: Anker Publishing, 2000.
- Crooke, Philip, Luke Froeb & Steven Tschantz, "Pedagogy using Mathematica through the Web", ALN Magazine Volume 2, Issue 2 (October 1998).
- Crooke, Philip, Luke Froeb & Steven Tschantz, "Simulate Mergers On-Line", Antitrust 11 (Spring, 1997) 29.
- Froeb, Luke, "Bid Rigging Against the Government," Owen Manager, (Spring, 1994).
- Froeb, Luke, Richard W. Oliver, and David Weiskopf, "Geographic Variation in Internet Connectivity," Papers & Proceedings of the Twenty Ninth IEEE Hawaii International Conference on Systems Sciences, vol. 29, 1996.
Book Reviews

Froeb, Luke, Book Review of Modern Competitive Analysis by Sharon Oster, Managerial and Decision Economics, vol. 21 (July-August 2000), pp. 209-10.
Froeb, Luke, "Teaching Business Economics to the MTV Generation," Book Review of Business Economics by Maria Moschandreas, Managerial and Decision Economics, 16 (1995) 93-94.

Software:

Crooke, Philip, Luke Froeb, and Steven Tschantz, "Maximum Likelihood Estimation," Mathematica package (1998).
Crooke, Philip, Luke Froeb, and Steven Tschantz, Sim Merger™, a Mathematica package that simulates the effects of mergers, commissioned by the U.S. Department of Justice (1998).
Froeb, Luke, Click&Learn Regression, interactive software that teaches regression analysis to lay persons (1993).

Awards, grants, professional activities

2002 Dean's Award for Outstanding and Widespread Research Impact
2001 Dell STAR (Strategic Technology And Research) Grant to update web-based Mathematica simulation games.
2000 Dean's Award for Teaching Excellence.
1999 Outstanding Professor of the International Executive MBA program, run remotely by Owen in Miami.
1998 Outstanding Technological Innovation in Business Education for web-based Mathematica simulation games. Awarded by Price-Waterhouse and the University of Virginia McIntire School of Commerce.
1998 Editorial Board of International Journal of the Economics of Business
1995 Grant Recipient, the Provost's Initiative on Technological Innovation in the Classroom to develop the Vanderbilt University Mathematica Web Server.
1994-present Editor, Antitrust Policy, an on-line resource linking economic research, policy, and cases.
1993 Steering Committee Member for the Undergraduate Computation and Engineering Sciences project to promote the emerging field of computational science, 1993-1997.