Michael Baye

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Michael R. Baye is the Bert Elwert Professor of Business Economics in the Kelley School of Business at Indiana University.

Education & Profession

Dr.Baye received his B.S. from Texas A&M University in 1980 and earned a Ph.D. in economics from Purdue University in 1983. Dr.Baye has held appointments at Cambridge, Oxford, Erasmus, Tilburg, and the New Economic School in Moscow.He has won many awards for outstanding teaching, and regularly teaches courses in managerial economics and industrial organization at the undergraduate, M.B.A., and Ph. D. level.

As of July 2007 Dr.Baye has accepted a position to lead the Federal Trade Commission Bureau of Economics. As director, he advises the FTC on economic policy matters. He is a special consultant for NERA economic consultants.

Work in Economics

Dr. Baye's research primarily focuses on pricing strategies and their impact on consumer welfare and firm profits. His early papers showed dealt with the construction of price indices when firms charge different prices for the same product to consumers that have imperfect price information. His later works showed that, by appropriately adjusting price indices, cost-of-living measures and real wage indices to...
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