Business Schools

David Dranove's Book Recommendations


Reading List:

ECONOMICS, ORGANIZATION, AND MANAGEMENT by Paul Milgrom and John Roberts

"There are more ideas about strategy and organizations on any one page of this book than there are in a hundred pages of most every other strategy book. These Stanford professors were the first to translate modern microeconomics into a book about business strategy. The book may be rough sledding for the casual reader, but the payoff is enormous. This is the book that inspired many other academics, including David Besanko, Mark Shanley, and myself at Northwestern, and Garth Saloner, Andrea Shepard, and Joel Podolny at Stanford, to write a new generation of economics-oriented strategy texts and change the way that strategy is taught at top business schools."

CO-OPETITION by Adam Brandenburger and Barry Nalebuff

"The traditional MBA teaching of business strategy begins with Michael Porter's Competitive Strategy. In Porter's classic work, firms are surrounded by threats from competitors, entrants, powerful buyers and suppliers. In sharp contrast to Porter's gloomy view of the firm's environment, Brandenburger and Nalebuff introduce the concept of complementors- the same firms that might threaten your own firm's profitability can, under the right circumstances, enhance it. They also introduce the concept of the value net - the set of firms which, collectively, determine the overall value of the goods and services delivered to the market. This is a must read for any firm that is wants to succeed by making peace, not war."

TRUMAN by David McCullough and AMERICAN PHAROAH by Adam Cohen and Elizabeth Taylor

"These marvelous biographies of two great leaders of the twentieth century (the latter is about Richard J. Daley) lend themselves to a neat game. Both men rose from humble beginnings and suspicions of mob connections to what each believed was the highest elected office in the land. Beyond that, they had little else in common. One kept his humility; the other used it as a public relations ploy. One walked away from power; the other held on to it until the end. Now the game: whose leadership style does yours most closely resemble? Whose do you want it to resemble?"

NATURE'S METROPOLIS by William Cronon

"As an amateur historian, I could not resist this economic history of Chicago. Cronon persuasively argues that Chicago's location at the base of Lake Michigan and the mouth of the Illinois River gave it a tremendous advantage over other cities vying to be the business capital of the Midwest. Cronon's description of the history of the Chicago grain, meat packing, and timber industries are both fun and thought provoking. This book reminds us that cities (and businesses) do not become great by accident. It takes a combination of the right people (such as McCormick, Swift, and Armour) and the right circumstances to create enduring value."

WHO SHALL LIVE? by Victor Fuchs

"Written 27 years ago, this seminal book about the U.S. health care system addresses two questions that will likely never go away: How can we afford to provide all the medical care that patients and their physicians would like to have? How do we evaluate a health care system whose success depends more on the health behaviors of consumers than on the decisions of providers and insurers? To this day, regulators in the public sector and managed care organizations in the private sector continue to wrestle with the provocative questions posed by Fuchs."

THE ECONOMIC EVOLUTION OF AMERICAN HEALTHCARE by David Dranove

"For many years, my students have asked me to recommend a book that explains how the U.S. health care system got where it is today, how well the system is doing, and where it is heading. I wrote this book to meet that need."

Biographical Info:

David Dranove is the Walter McNerney Distinguished Professor of Health Industry Management at Northwestern University's Kellogg Graduate School of Management. He is also Professor of the Department of Management and Strategy. Previously Professor Dranove was the chair of the Department of Management and Strategy and was the Richard Paget Distinguished Professor of Management and Strategy. He has a Ph.D. in Business Economics from Stanford University. Professor Dranove's research and teaching focus on problems in industrial organization and business strategy with an emphasis on the health care industry.

He has published over seventy research papers, monographs, and book chapters, and is coauthor of the popular textbook The Economics of Strategy and the trade book How Hospitals Survived. His most recent book, The Economic Evolution of American Health Care: From Marcus Welby to Managed Care, published by the Princeton University Press, has garnered considerable praise and attention.

The Association of University Programs in Health Administration awarded Professor Dranove the John Thompson Prize, in recognition of his contributions to health services research. Professor Dranove has received numerous other prizes for his research, including, most recently, the 1998 National Institute for Health Care Management Research Award, the 1999 Association of Health Service Research Paper of the Year Award, and the 1999 Sudexho Marriott Faculty Publication of the Year Award. In addition to being a prolific author and scholar, Professor Dranove regularly consults with leading public and private sector organizations about issues in strategic management and antitrust.


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