Matt Schmitt

Profile photo of Matt Schmitt
“Passion keeps you engaged and motivated. But if you move forward without deep knowledge and careful, balanced thinking, you risk throwing all your weight behind tenuous ideas.”
 

Assistant Professor of Strategy

(310) 206-5572, Office D-507

About

 

Biography

“A smart and effective competition authority is an integral part of a well-functioning market economy,” says Assistant Professor of Strategy Matt Schmitt. “It keeps firms honest while not overburdening them with regulation — strengthening incentives for firms to innovate and create value.”

Schmitt is a health and industrial organization economist who earned his Ph.D. in managerial economics and strategy from the Kellogg School of Management at Northwestern University. His research examines competition and antitrust issues in health care markets, an area of growing policy interest.

“Business practices are constantly evolving,” he says. “Antitrust analysis of these practices is often extremely nuanced and complex, especially in health care, where there are several different layers of decision makers, all with potentially competing objectives. My research seeks to better understand the economics of these situations and whether policy may have a role to play in improving outcomes.”

Schmitt’s current projects include studies of competition between multihospital systems, cost savings from hospital mergers, copayment coupons for prescription drugs and “reverse payment” patent settlements. “The health care industry is undergoing a huge wave of consolidation. There is hope that this will reduce costs and improve quality, but also a concern that it will just reduce competition and lead to even higher prices. With health care now accounting for more than 17 percent of GDP, the stakes are high.”

When he is not applying his expertise to research and teaching, Schmitt might be found taking in a professional sports game. He is particularly excited that the NFL has returned to the Los Angeles area, though his loyalties remain with teams in Kansas City, where he was born.

 

Education

Ph.D. Managerial Economics and Strategy, 2016, Kellogg School of Management, Northwestern University

B.A. Economics, 2009, Georgetown University

 

Publications

When Discounts Raise Costs: The Effect of Copay Coupons on Generic Utilization (with Leemore Dafny and Christopher Ody), American Economic Journal: Economic Policy, May 2017
Press: Los Angeles Times, New York Times, Business Insider, NPR Marketplace

Do Hospital Mergers Reduce Costs?Journal of Health Economics, March 2017

Undermining Value-Based Purchasing - Lessons from the Pharmaceutical Industry (with Leemore Dafny and Christopher Ody), New England Journal of Medicine (Perspective), November 2016

 

Working Papers

A Framework for Estimating Damages in Reverse Payment Cases (with Soheil Ghili), forthcoming at the Antitrust Law Journal

Multimarket Contact in the Hospital Industry, forthcoming at the American Economic Journal: Economic Policy

Closing the Secondary Market: Evidence from College Textbooks (with Tongtong Shi)