Eric B. Rasmusen

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Contact Information


(812) 855-3356

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Business School
Room 438

  • Professor of Business Economics & Public Policy
  • Dan R. and Catherine M.Dalton Professorship
  • Adjunct Professor of Economics, COAS

Campus

  • Bloomington

Education

  • BA, Yale, 1980
  • MA, Yale, 1980
  • PhD, Massachusetts Institute of Technology, 1984

Professional Experience

  • Indiana University, Kelley School of Business, Dan R. and Catherine M. Dalton Professor, 2005- present. Indiana University Foundation Professor, 2001-2005. Professor of Economics and Public Policy, 1996-2002. Associate Professor, 1992-1996.
  • Oxford University, Nuffield College, Visitor 2007-2008.
  • University of Tokyo, Center for International Research on the Japanese Economy and Faculty of Economics: Visiting Professor, 2001.
  • Harvard Law School: John M. Olin Senior Research Fellow in Law and Economics, 2000-2001.
  • University of California, Los Angeles, John E. Anderson Graduate School of Management: Assistant Professor, 1984-1992.
  • Yale Law School: Olin Faculty Fellow, 1991-1992.
  • University of Chicago, Center for the Study of the Economy and the State and Graduate School of Business: John M. Olin Visiting Assistant Professor of Business Economics, 1989-90.
  • Teaching Assistant, Economics Department and Sloan School, Massachusetts Institute of Technology, 1982-84.

Professional Interests

Law and Economics, Social Regulation, Crime, Asymmetric Information

Selected Publications

  • Rasmusen, Eric Bennett  (2012), "First versus Second-Mover Advantage with Information Asymmetry about the Size of New Markets," (with Young-Ro Yoon). Journal of Industrial Economics, Vol. 60, Issue 3, September, pp. 374–405. Read Abstract
  • Rasmusen, Eric Bennett and J. Mark Ramseyer (2012), "Are Americans More Litigious? Some Quantitative Evidence," in Frank Buckley (ed.), An American Illness, forthcoming.  Read Abstract
  • Rasmusen, Eric Bennett (2012), "Internalities and Paternalism: Applying the Compensation Criterion to Multiple Selves across Time," Social Choice and Welfare, Vol. 38, No. 4, April, pp. 601-615. Read Abstract
  • Rasmusen, Eric Bennett and J. Mark Ramseyer (2011), "Can the Treasury Exempt Companies It Owns from Taxes? The $45 Billion General Motors Loss Carryforward Rule," in Jeffrey Miron (ed.), The Cato Papers on Public Policy. Read Abstract
  • Nakazato, Minoru, J. Mark Ramseyer, and Eric Bennett Rasmusen (2011), "Executive Compensation in Japan: Estimating Levels and Determinants from Tax Records," Journal of Economics and Management Strategy, Vol. 20, No. 3, Fall, pp. 843-885. Read Abstract
  • Rasmusen, Eric Bennett  (2010), "Career Concerns and Ambiguity Aversion," Economics Letters, Vol.108, No. 2, August, 175-177.  Read Abstract
  • Rasmusen, Eric Bennett, Minoru Nakazato, and J. Mark Ramseyer (2010), "The Industrial Organization of the Japanese Bar: Levels and Determinants of Attorney Income," Journal of Empirical Legal Studies, Vol. 7, No. 3, September, pp. 460-489. Read Abstract
  • Rasmusen, Eric Bennett, Minoru Nakazato and J. Mark Ramseyer (2009), "Public and Private Firm Compensation Compared: Evidence from Japanese Tax Returns," Korean Economic Review, Vol. 25, No. 1, Summer, 5-34. Read Abstract
  • Rasmusen, Eric Bennett, Manu Raghav and J. Mark Ramseyer (2009), "Convictions versus Conviction Rates: The Prosecutor's Choice," American Law and Economics Review, Vol. 11, No. 1, Spring, 47-78. Read Abstract
  • Rasmusen, Eric Bennett (2009), "Letter: Research Economist Support for the Stimulus Bill," The Economists' Voice, Vol. 6, No. 3, Article 6, February, 1-2. Read Abstract
  • Rasmusen, Eric Bennett (2008). "Letter: What Economists Can Contribute to the Global Warming Debate," The Economists' Voice, 5(3) Article 2.
  • Rasmusen, Eric Bennett, Isao Miura, and Tohru Naito, (2008) "The BLP Method of Demand Curve Estimation in Industrial Organization," in Isao Miura and Tohru Naito (eds), Gendai Keizaigaku 1, mikuro-bunseki, Tokyo: Keiso shobo. Read Abstract
  • Rasmusen, Eric Bennett (2007), "Game Theory and the Law", editor, Edward Elgar.
  • Rasmusen, Eric, Bennett (2007), "When Does Extra Risk Strictly Increase the Value of Options?" The Review of Financial Studies, 20(5)  September, 1647-1667. Read Abstract
  • Rasmusen, Eric Bennett and J. Mark Ramseyer (2007), "Recruitment into Managed Courts during Political Chaos: Japan in the 1990s," Journal of Comparative Economics, Vol. 35, No. 2,  June, 329-345. Read Abstract
  • Rasmusen, Eric Bennett, and  Richard McAdams (2007), "Norms in Law and Economics", in A. Mitchell Polinsky & Steven Shavell eds. Handbook of Law and Economics, Volume 2, Amsterdam: Elsevier. Read Abstract
  • Rasmusen, Eric Bennett (2006), "Strategic Implications of Uncertainty Over One's Own Private Value in Auctions" in The BE Press Journal, Advances in Theoretical Economics, Vol. 6: No. 1, Article 7. Read Abstract
  • Rasmusen, Eric Bennett and J. Mark Ramseyer (2006), "The Case for Managed Judges: Learning from Japan after the Political Upheaval of 1993," University of Pennsylvania Law Review, Vol. 154, No. 6,  June, 1879-1930. Read Abstract
  • Ramusen, Eric Bennett (2006), Games and Information (Fourth Edition), Website at http://www.rasmusen.org/GI/index.html. Games and Information , Oxford: Blackwell Publishers. First edition, 1989. 344 pp., ISBN: 0-631-15709-3. Second edition, 1994, 478 pp., ISBN: 1-55786-502-7. Third Edition, 445 pp., ISBN: 0631210954, 2001. Fourth edition, 2006.
  • Rasmusen, Eric Bennett (2006), "Letter: Must Homeowners Lose Wealth When House Prices Fall?," The Economists' Voice: Vol. 3 : Iss. 4. Read Abstract
  • Rasmusen, Eric Bennett (2004), "The Economics of Agency Law and Contract Formation," American Law and Economics Review, Vol. 6, No. 2, Fall, 369-409. Read Abstract
  • Rasmusen, Eric Bennett and Thomas P. Lyon (2004), "Buyer-Option Contracts, Renegotiation, and the Hold-Up Problem,'' The Journal of Law, Economics and Organization, Vol. 20, No. 1, April, 148-169. Read Abstract
  • Rasmusen, Eric Bennett and Mark Ramseyer (2003), "Measuring Judicial Independence: The Political Economy of Judging in Japan," Chicago: University of Chicago Press. ISBN: 0226703886. The website is at http://rasmusen.org/published/jbook/jbook.htm.
  • Ramusen, Eric Bennett (2002), "An Economic Approach to Adultery Law," Chapter 5, in Antony Dnes and Robert Rowthorn (eds.), Marriage and Divorce: An Economic Perspective, Cambridge: Cambridge University Press, pp. 70-91.
  • Rasmusen, Eric Bennett and Maarten Janssen (2002), "Bertrand Competition under Uncertainty," The Journal of Industrial Economics, Vol. 50, No. 1, March, 11-21. Read Abstract
  • Rasmusen, Eric Bennett and Timothy Perri (2001), "Can High Prices Ensure Product Quality when Buyers Do Not Know the Seller's Cost?," Economic Inquiry, Vol. 39, No. 4, October, 561-567. Read Abstract
  • Rasmusen, Eric Bennett (2001), "Explaining Incomplete Contracts as the Result of Contract - Reading Costs," Advances in Economic Analysis and Policy, Vol. 1, No. 1, Article 2. Read Abstract
  • Rasmusen, Eric Bennett and J. Mark Ramseyer (2001), "Why Are Japanese Judges So Conservative in Politically Charged Cases?," American Political Science Review, Vol. 95, No. 2, June, 331-344. Read Abstract
  • Rasmusen, Eric Bennett and J. Mark Ramseyer (2001), "Why Is the Japanese Conviction Rate So High?," The Journal of Legal Studies, Vol. 30, No. 1,  January, 53-88. Read Abstract
  • Rasmusen, Eric Bennett (ed.) (2001), Readings in Games and Information, (editor) Oxford: Blackwell Publishers, 2001. ISBN's 0631215573 (paperback) and 0631215565 (hardback). The website is at http://rasmusen.org/GI/reader/gireader.htm.
  • Rasmusen, Eric Bennett (2001), "Aphorisms on Writing, Talking, and Listening," Readings in Games and Information, Oxford: Blackwell Publishers. Read Abstract
  • Rasmusen, Eric Bennett and F. H. Buckley (2000), "The Uneasy Case for the Flat Tax," Constitutional Political Economy, Vol. 11, No. 4, December, 295-318. Read Abstract
  • Rasmusen, Eric Bennett and J. Mark Ramseyer (2000), "Skewed Incentives: Paying for Politics as a Japanese Judge," Judicature, Vol. 83, January/February, 190-195 (cover article). Read Abstract
  • Rasmusen, Eric Bennett, J. Mark Ramseyer, and John Wiley (2000), "Naked Exclusion: A Reply," American Economic Review, Vol. 90, March, 310-311.
  • Rasmusen, Eric Bennett (2000), "Review of Stahler, E: Economic Games and Strategic Behaviour: Theory and Application," Journal of Economics/ Zeitschrift für Nationalkonomie, Vol. 71, No. 3, October, 322-324.
  • Rasmusen, Eric Bennett and Richard Posner (1999), "Creating and Enforcing Norms, with Special Reference to Sanctions," International Review of Law and Economics, Vol. 19, No. 3, September, 369-382. Read Abstract
  • Rasmusen, Eric Bennett and J. Mark Ramseyer (1999), "Why the Japanese Taxpayer Always Loses," Southern California Law Review, Vol. 72, January/March, pp. 571-596. Translated and reprinted in Mitsuaki Usui, et al. (eds.) (2000), "Doshite Nihon no nozeisha wa katenai no ka" [Why Can't Japanese Taxpayers Win?], in Kohogaku no ho to seisaku:ge [Law and Policy in Public Law: Vol. 2], 147, Tokyo: Yuhikaku. Read Abstract
  • Rasmusen, Eric Bennett (1998), "Review of Timur Kuran, Private Truths, Public Lies: The Social Consequences of Preference Falsification," Journal of Economic Behavior and Organization, Vol. 33, pp. 309-311. Read Abstract
  • Rasmusen, Eric Bennett (1998), "Review of Coasean Economics: Law and Economics and the New Institutional Economics edited by Steven Medema," Journal of Economic Literature, Vol. 36, December, pp. 2171-2174.
  • Rasmusen, Eric Bennett (1998), "Nuisance Suits," in Peter Newman (ed.), The New Palgrave Dictionary of Money and Finance, London: Macmillan Press. Read Abstract
  • Rasmusen, Eric Bennett and Jeffrey Stake (1998), "Lifting the Veil of Ignorance: Personalizing the Marriage Contract," Indiana Law Journal, Vol. 73, Spring, 454-502. Read Abstract
  • Rasmusen, Eric Bennett (1998), "Mezzanatto and the Economics of Self Incrimination," Cardozo Law Review, Vol. 19, May, 1541-1584. Read Abstract
  • Rasmusen, Eric Bennett (1998), "The Economics of Desecration: Flag Burning and Related Activities," The Journal of Legal Studies, Vol. 27, No. 2, June, 245-270. Read Abstract
  • Rasmusen, Eric Bennett (1998), "Observed Choice, Estimation, and Optimism about Policy Changes," Public Choice, Vol. 97, Nos. 1-2, October, 65-91. Read Abstract
  • Rasmusen, Eric Bennett (1998), "The Observed Choice Problem in Estimating the Cost of Policies," Economics Letters, Vol. 61, No. 1, 13-15.
  • Rasmusen, Eric Bennett (1997), "Choosing among Signalling Equilibria in Lobbying Games," Public Choice, Vol. 91, April, 209-214.   Read Abstract
  • Rasmusen, Eric Bennett, Emmanuel Petrakis, and Santanu Roy (1997), "The Learning Curve in a Competitive Industry," The RAND Journal of Economics, Vol. 28, Summer, 248-268.  Read Abstract
  • Rasmusen, Eric Bennett and J. Mark Ramseyer (1997), "Judicial Independence in Civil Law Regimes: Econometrics from Japan," The Journal of Law, Economics, and Organization, Vol. 13, 259-286 (lead article). Translated and reprinted, "Nihon ni okeru shiho no dokuritsu wo kensho suru" [Examining Judicial Independence in Japan], Rebaiasan [Leviathan: The Japanese Journal of Political Science] (1998), Vol. 22, 116-149. Read Abstract
  • Rasmusen, Eric Bennett (1997), "Of Sex and Drugs and Rock'n Roll: Law and Economics and Social Regulation," Harvard Journal of Law and Public Policy, Vol. 21, Fall, 71-81.  Read Abstract
  • Rasmusen, Eric Bennett (1997), "A Theory of Trustees, and Other Thoughts," in Tahire Akder (ed.), Public Debt and its Finance in a Model of a Macroeconomic Policy Game: Papers Presented at a Workshop held in Antalya, Turkey on October 10-11, 1997. Read Abstract
  • Rasmusen, Eric Bennett (1997), "Signal Jamming and Limit Pricing: A Unified Approach," Moriki Hosoe and Eric Rasmusen (eds.), Public Policy and Economic Analysis, Fukuoka, Japan: Kyushu University Press. Read Abstract
  • Rasmusen, Eric Bennett and Moriki Hosoe (eds.) (1997), Public Policy and Economic Analysis, Fukuoka, Japan: Kyushu University Press.
  • Rasmusen, Eric Bennett, Kenneth Dau-Schmidt, Michael Alexeev, Jeffrey Stake, and Robert Heidt (1997), "Review Discussion: Game Theory and the Law," Law and Society Review, Vol. 31, 613-629.
  • Rasmusen, Eric Bennett (1996), "Stigma and Self-Fulfilling Expectations of Criminality," Journal of Law and Economics, Vol. 39, October, 519-544.   Read Abstract
  • Rasmusen, Eric Bennett (1996), "The Posner Argument for Transferring Health Spending from Old Women to Old Men," Economics Letters, Vol. 53, December, 337-339.   Read Abstract
  • Rasmusen, Eric Bennett (1996), "Review of Competition, Commitment, and Welfare by Kotaro Suzumura," Journal of Economic Literature, Vol. 34, September, 1374-1376.
  • Rasmusen, Eric Bennett and Ken Binmore (1995), "Review of Game Theory and the Social Contract: Volume 1, Playing Fair by Ken Binmore," Journal of Economic Literature, Vol. 33, December, 1979-1980.
  • Rasmusen, Eric Bennett  (1995), "How Optimal Penalties Change with the Amount of Harm," International Review of Law and Economics, Vol. 15, 101-108.
  • Rasmusen, Eric Bennett (1995), "Predictable and Unpredictable Error in Tort Awards: The Effect of Plaintiff Self Selection and Signalling," International Review of Law and Economics, Vol. 15, September, 323-345.   Read Abstract
  • Rasmusen, Eric Bennett and J. Mark Ramseyer (1994), "Cheap Bribes and the Corruption Ban: A Coordination Game among Rational Legislators," Public Choice, Vol. 78, 305-327. Reprinted in Gianluca Fiorentini and Stefano Zamagni (eds.), The Economics of Corruption and Illegal Markets, Edward Elgar.   Read Abstract
  • Rasmusen, Eric Bennett (1994), "Judicial Legitimacy: An Interpretation as a Repeated Game," The Journal of Law, Economics, and Organization, Vol. 10, April, 63-83. (105). Read Abstract
  • Rasmusen, Eric Bennett (1993), "Lobbying when the Decisionmaker Can Acquire Independent Information," Public Choice, Vol. 77, 899-913.  Read Abstract
  • Rasmusen, Eric Bennett and Ian Ayres (1993), "Mutual versus Unilateral Mistake in Contracts," The Journal of Legal Studies, Vol. 22, June, 309-343. Read Abstract
  • Rasmusen, Eric Bennett and Emmanuel Petrakis (1992), "Defining the Mean-Preserving Spread: 3-pt versus 4-pt," in John Geweke (ed.), Decision Making under Risk and Uncertainty: New Models and Empirical Findings, Amsterdam: Kluwer.   Read Abstract
  • Rasmusen, Eric Bennett (1992), "The Strategy of Sovereign Debt Renegotiations," in Ronald Solberg (ed.), The Handbook of Country Risk Analysis, London: Routledge Press. Read Abstract
  • Rasmusen, Eric Bennett (1992), "Game Theory in Finance," in John Eatwell, Murray Milgate, and Peter Newman (eds.), The New Palgrave Dictionary of Money and Finance, New York: Stockton Press.  Read Abstract
  • Rasmusen, Eric Bennett (1992), "Heterogeneous Players and Specialized Models," Rationality and Society, Vol. 4, January, 83-94. Reprinted in Michael McGinnis (ed.), Polycentric Games and Institutions, Ann Arbor: University of Michigan Press 2000, 275-284.
  • Rasmusen, Eric Bennett (1992), "Folk Theorems for the Observable Implications of Repeated Games," Theory and Decision, Vol. 32, March, 147-164.   Read Abstract
  • Rasmusen, Eric Bennett (1992), "Managerial Conservatism and Rational Information Acquisition," Journal of Economics and Management Strategy, Vol. 1, No. 1, Spring, 175-202.   Read Abstract
  • Rasmusen, Eric Bennett (1992), "An Income-Satiation Model of Efficiency Wages," Economic Inquiry, Vol. 30, No. 3, July, 467-478.   Read Abstract
  • Rasmusen, Eric Bennett and Jack Hirshleifer (1992), "Are Equilibrium Strategies Unaffected by Incentives?," The Journal of Theoretical Politics, Vol. 4, July, 343-357. Reprinted in Jack Hirshleifer (ed.) (2001), The Dark Side of the Force: Foundations of the Economic Theory of Conflict, Cambridge: Cambridge University Press. 
  • Rasmusen, Eric Bennett, J. Mark Ramseyer, and John Wiley (1991), "Naked Exclusion," American Economic Review, Vol. 81, No. 5, December, pp. 1137-1145. John Wiley). Rasmusen_91AER.exclusion.pdf. See also to a comment/extension/correction by Siegel and Whinston (AER, March 1990: 90: 310-311) and longer comments (ascii))(299). Read Abstract
  • Rasmusen, Eric Bennett and Mark Zupan (1991), "Extending the Economic Theory of Regulation: The Form of Policy," Public Choice, Vol. 72, 167-191.   Read Abstract
  • Rasmusen, Eric Bennett (1991), "Recent Developments in the Economics of Exclusionary Contracts," Chapter 16, in R. Khemani and W. Stanbury (eds.), Canadian Competition Law and Politics at the Centenary, Halifax: The Institute for Research on Public Policy, 371-388. Read Abstract
  • Rasmusen, Eric Bennett, J. Mark Ramseyer, and John Wiley (1990), "The Leasing Monopolist," UCLA Law Review, Vol. 37, April, 693-732. Read Abstract
  • Rasmusen, Eric Bennett and Todd Zenger (1990), "Diseconomies of Scale in Employment Contracts," Journal of Law, Economics and Organization, Vol. 6, No. 1, June, 65-92.  Read Abstract
  • Rasmusen, Eric Bennett and John Wiley (1989), "Antitrust and Spatial Predation: a Response to Thomas J. Campbell," Columbia Law Review, June, 1015-1032.
  • Rasmusen, Eric Bennett (1989), "A Simple Model of Product Quality with Elastic Demand," Economics Letters, Vol. 29, No. 4, 281-228. 
  • Rasmusen, Eric Bennett and David Hirshleifer (1989), "Cooperation in a Repeated Prisoner's Dilemma with Ostracism," Journal of Economic Behavior and Organization, Vol. 12, August, 87-106 (183). Read Abstract
  • Rasmusen, Eric Bennett (1988), "Entry for Buyout," Journal of Industrial Economics, Vol. 36, March, 281-300.  Read Abstract
  • Rasmusen, Eric Bennett (1988), "Stock Banks and Mutual Banks," Journal of Law and Economics, Vol. 31, October, 395-422. Reprinted in Banking Law Anthology , Volume IV (1988), Bethesda, Md: International Library. (118). Read Abstract
  • Rasmusen, Eric Bennett (1987), "Moral Hazard in Risk-Averse Teams," RAND Journal of Economics, Vol. 18, Fall, 428-435.  Read Abstract