Economist and
@StanfordGSB Professor Donald John Roberts passed away last Thursday 2026/01/22. He was 80 years old. I considered him a mentor and a friend. He was always interesting and funny and had a really positive disposition. It was a pleasure to chat with him.
Together with his long term coauthor Paul Milgrom, John was a key person in changing how economists think about firms as organizations. He always remembered fondly the years he spent at Northwestern's Kellogg School from 1971 to 1980, where he joined a fantastic group that included Roger Myerson, Bengt Holmström, Nancy Stokey, Robert Weber, Mark Satterthwaite and Paul Milgrom. They all used used game theory and information economics to study of many problems across economics: he mainly in industrial organization (notably his work on limit pricing with Milgrom and his work with Milgrom Kreps and Roberts on repeated Prisoner's dilemma with incomplete information), but the group made path breathtaking work in auctions, financial markets, mechanism design.
He later worked on complementarities and organizations, with key papers on supermodular games and monotone comparative statics. He showed firm performance resulted from the interplay of information, incentives, and complementarities. This work is crucial to understand technology adoption and strategy.
He also studied, with
@I_Am_NickBloom management practices empirically in India, by running an experiment where consulting advice was randomized, and in China on WFH also with Nick.
He wrote with Milgrom a book for MBAs that bombed for MBAs (too dense, too many ideas) but that Econ profs and PhDs (me at the time!) loved: Economics, Organization and Management (1992). It had a massive impact (15K cites, astonishing for an MBA textbook), and it is still a book I read. It was the first textbook to apply modern contract theory and incentive economics to management problems. He extended this work in his 2004 book The Modern Firm, which was named best business book of the year by The Economist, and which analyzed how organizational design, competitive strategy, and business environment must fit together for firms to perform well. I always think of firms in terms of his frameworks. (He summarized the way he thought about Firm capabilities by PARC- People, Architecture, Routines, Culture-he liked to say his Stanford students teased him by reading his acronym backwards).
In all his work he asked how economic reasoning could illuminate the organization of productive activity. He believed that economic theory should connect to real decisions, and that the study of organizations deserved the same rigor applied to markets.
I loved John and learned a lot from him. R.I.P.