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Personal Profile of Dr. Sanford J. Grossman

Dr. Sanford J. Grossman

Sanford J. Grossman earned his BA in 1973, MA in 1974 and PhD in 1975, all in Economics, from the University of Chicago. Since receiving his doctorate, he has held academic appointments at Stanford University, the University of Chicago, Princeton University (as the John L. Weinberg Professor of Economics, 1985–89) and at the University of Pennsylvania’s Wharton School of Business. At Wharton, Dr. Grossman held the position of Steinberg Trustee Professor of Finance from 1989 to 1999 (a title now held in Emeritus) and also served as the Director of the Wharton Center for Quantitative Finance (1994–1999). Dr. Grossman currently serves as Chairman of Quantitative Financial Strategies, Inc.

In addition, Dr. Grossman was an Economist with the Board of Governors of the Federal Reserve System (1977–78), and was a Public Director of the Chicago Board of Trade (1992–96). In 1988, he was elected a Director, in 1992 served as Vice President, and in 1994 was President of the American Finance Association. Dr. Grossman's research has spanned the analysis of information in securities markets, corporate structure, property rights, and optimal dynamic risk management.

He has published widely in leading economic and business journals, including American Economic Review, Journal of Econometrics, Econometrica and Journal of Finance. His papers include “The Existence of Futures Markets, Noisy Rational Expectations and Information Externalities”; “On the Efficiency of Competitive Stock Markets Where Traders Have Diverse Information”; “On the Impossibility of Informationally Efficient Markets,” with Joseph Stiglitz; “An Introduction to the Theory of Rational Expectations Under Asymmetric Information”; and “The Costs and Benefits of Ownership: A Theory of Vertical Integration,” with Oliver Hart.

Dr. Grossman’s original contributions to economic research received official recognition when he was awarded the John Bates Clark Medal by the American Economic Association at its December 1987 annual meeting. The Q-Group awarded him first prize in the Roger F. Murray Prize competition for the paper “An Analysis of the Implications for Stock and Future Price Volatility of Program Trading and Dynamic Hedging Strate¬gies.” The Editorial Board of the Financial Analysts Journal awarded him the 1988 Graham and Dodd Scroll for “Program Trading and Market Volatility: A Report on Interday Relationships.” Dr. Grossman received a Mathematical Finance 1993 Best Paper Award for his article “Optimal Investment Strategies for Controlling Drawdowns.” Dr. Grossman received the 1996 Leo Melamed Prize by the University of Chicago Booth School of Business for outstanding scholarship by a professor. In 2002, Dr. Grossman was recognized by the University of Chicago with its Professional Achievement Citation. Dr. Grossman was the recipient of the 2009 CME Group-MSRI Prize in Innovative Quantitative Applications, which was presented to him by the CME Group and the Mathematical Sciences Research Institute in Chicago.

Current/Future Committee Membership
Name Office Start Date End Date
Board of Trustees Mar 06, 2010 Feb 28, 2022

Past Committee Membership
Name Office Start Date End Date
Committee on Trustees Mar 07, 2015 Feb 29, 2016