Tony M. Kwasnica

Color portrait of Tony M. Kwasnica

Professor, Director of Laboratory for Economics Management and Auctions

Department Risk Management
Office Address 355 Business Building
Email Address

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Anthony M. Kwasnica is Professor of Business Economics at Penn State University. He studies the role of private information in economic systems. He conducts both theoretical and experimental (laboratory) research on how individuals and institutions respond to these situations. Dr. Kwasnica is actively involved in research on the design and implementation of complex auctions. He has conducted experiments that have been used by the Federal Communications Commission (FCC) to consider new designs for the broadband spectrum auctions. Likewise, Dr. Kwasnica has investigated the susceptibility of various auction designs to collusion. In the past, Dr. Kwasnica has been contracted by the FCC to conduct an experimental examination of horizontal concentration limits in the cable television industry. He has also worked with the Defense Advanced Research Projects Agency (DARPA) on the design of markets to predict global instability. In addition to teaching undergraduate courses in mathematical modeling and decision analysis, Dr. Kwasnica has taught microeconomics, macroeconomics and decision-making under uncertainty to executives and MBAs at both The Smeal College of Business and The Kellogg School of Management. Dr. Kwasnica received his PhD in Social Science from the California Institute of Technology. Dr. Kwasnica is also Director of the Laboratory for Economics Management and Auctions (LEMA), which is Penn State’s only dedicated experimental economics laboratory.


Dr. Kwasnica is currently conducting research on the coordination in games, the design of auctions for conservation projects, and the ability to real human decision maker to correctly account for information source uncertainty.


Ph D, Social Science, California Institute of Technology, 2000

MS, Social Science, California Institute of Technology, 1997

BA, Economics, The University of Arizona, 1994

Courses Taught

BA 512 – Risk and Decisions (2)
This course is an introduction to the mathematical methods and tools of managerial decision making under uncertainty. While the main topics of the course are probability, statistics, decision analysis, simulation, and regression which are mathematical by nature, emphasis is placed on improving an intuitive understanding of the underlying issues in these topics. Rather than simply memorizing mathematical formulas, the student is encouraged to gain a better understanding of why certain concepts are used, and to learn what type of information is relevant to evaluate different situations of uncertainty. Students are expected to apply and discuss how the quantitative analysis they develop aides in business decision making. Students are expected to gain familiarity with various state of the art software packages for this analysis.

This course discusses topics in advanced microeconomic analysis with an emphasis on applications to applied research areas in business and other related disciplines. Topics include (but are not limited to) general equilibrium, choice under uncertainty, game theory, mechanism design, and behavioral economics. An area of particular focus is how incomplete and asymmetric information impacts competitive and strategic behavior by individuals and firms in a variety of applied settings. The materials emphasize theoretical models prevalent in microeconomic research, and students are expected to develop a familiarity with the use of mathematical modeling in economics. Whenever possible applications to related applied disciplines such as those in finance, supply chain management, accounting, and agricultural economics will be highlighted and discussed. Experimental methods will be used at times to motivate and discuss various economic principles.

BA 597 – Special Topics (3)
Formal courses given on a topical or special interest subject which may be offered infrequently.

BA 597D – **Special Topics** (3)

B A 597F – Experiemntal and Behavioral Research in Business Economics (3)
This class will provide an introduction to the researcher interested in using experimental methods or behavioral models in their research. The class will cover topics including the design, conduct, and analysis of economics experiments. A review of some s

BA 597F – **Special Topics** (3)

B A 512 – Quantitative Analysis for Managerial Decision Making (2)
Construction and use of quantitative methods in business decision-making.

B A 597D – Advanced Microeconomic Analysis (3)
Topics in advanced microeconomic analysis including competitive analysis, game theory, and mechanism design.

SC&IS 596 – Individual Studies (Variable)
Creative projects, including nonthesis research, that are supervised on an individual basis and which fall outside the scope of formal courses. A specific title may be used in each instance and will be entered on the student's transcript.

B A 532 – Global Business Environment (1)
An introduction to worldwide economic trends and economic problems with an emphasis on how businesses cope with global business problems.

B A 545 – Business, Government and International Economics (2)
Understand how macroeconomic events and policies affect the global economy and business decisions.

B A 427 – Risk and Decisions (3)
Conceptualizing decisions involving risk, analyzing choices, estimating the risk, and communicating the analysis.

B A 597K – Business Government and International Economics (2)
Greater context to understand how marketing strategies can or cannot be used to address key issues.

MS&IS 427 – Management Decision Theory (3)
Theoretical concepts for the solution of complex decision problems in business.

MS&IS 459W – Decision Support Systems (3)
Development of computer-based decision aids for supporting managerial decision making.

Selected Publications

Kwasnica A. M., "A Synthetic Prediction Market for Estimating Confidence in Published Work." AAAI 2022 Demonstrations, 2022,
Kwasnica A. M., Velthius R., Williams J., "Did You See What I Saw? Interpreting Others' Forecasts When Their Information Is Unknown." Review of Finance, vol. 23, no. 2, 2019, pp. 325-361
Fan J., Kwasnica A. M., Thomas D., "Paying for Teamwork: Supplier Coordination with Endogenously-Selected Groups." Production and Operations Management, vol. 27, no. 6, 2018, pp. 1089-1101
Davis A., Katok E., Kwasnica A. M., "Should Sellers Prefer Auctions? A Laboratory Comparison of Auctions and Sequential Mechanisms." Management Science, vol. 60, no. 4, 2014, pp. 990-1008
Kogan S., Kwasnica A. M., Weber R., "Coordination in the Presence of Asset Markets." American Economic Review, vol. 101, no. 2, 2011, pp. 927-47
Kwasnica A. M., Sherstyuk K., "Collusion and equilibrium selection in auctions." The Economic Journal, vol. 117, no. 516, 2007, pp. 120-145
Chen-Ritzo C., Harrison T. P., Kwasnica A. M., Thomas D. J., "Better, Faster, Cheaper: An experimental analysis of a multi-attribute reverse auction mechanism with restricted information feedback." Management Science, vol. 51, no. 12, 2005, pp. 1753-1762
Kwasnica A. M., DeMartini C., Ledyard J., Porter D., "A New and Improved Design for Multi-Object Iterative Auctions." Management Science, vol. 51, no. 3, 2005, pp. 419-434


Economic Inquiry, Co-Editor, July 2010 - Present
Co-editor for Experimental Economics Articles