Since its founding in 1949, by William Larimer Mellon, the Tepper School of Business at Carnegie Mellon has distinguished itself by developing the scientific principles that underlie business management. It has quickly grown into one of the world's premier centers for teaching and research in business management.
Many of the Tepper School’s educational innovations have now been adopted by other national and international business schools. For example, the Tepper School’s Management Game pioneered the use of computer simulation for experiential learning of business roles, and such simulations have subsequently been adopted by other institutions.
Tepper School of Business has produced eight Nobel Prize winners in Economics: Robert Lucas, Merton Miller, Franco Modigliani, Herb Simon, Edward Prescott, Finn Kydland, Oliver Williamson and Dale Mortensen.
Lucas was awarded the prize for his pioneering work on rational expectations theory and its implications for government macroeconomic and regulatory policies.
Modigliani's prize recognized his path-breaking life-cycle theory of consumer savings, an important component in all modern macroeconomic models.
Miller's prize was awarded in recognition of his contributions to corporate finance. The results of his research -- in collaboration with Franco Modigliani -- are now taught in every business school in the country.
Simon's prize was given for his seminal development of the idea of bounded rationality in economics, and the need to focus on human behavior as well as markets in order to understand the workings of a large industrial economy.
In 2004, Kydland and Prescott became the next Nobel Prize recipients from the business school. Their work together advanced the field of dynamic macroeconomics and transformed the practice of monetary and fiscal policy in many countries.
In 2009, Williamson was selected for: “his analysis of economic governance, especially the boundaries of the firm.” Williamson studied and conducted research at Carnegie Mellon University at a pivotal time in the history of modern business management education, an academic discipline that had been created only a few years earlier. He was an integral part of a group of students and faculty that forged a new path in business research and education.
In 2010, Mortensen was awarded the prize for his research with two others (Peter Diamond of the Massachusetts Institute of Technology, and Christopher Pissarides of the London School of Economics) in creating labor models that explain the effects of regulation and economic policy upon unemployment, job vacancies, and wages. Mortensen, performed the research that awarded him the Nobel prize at Northwestern University, earned his Ph.D. from the Graduate School of Industrial Administration (now the Tepper School of Business) in 1967.
Today, the business school is most recognized for research and teaching within the areas of organizational behavior, finance, economics, operations, computational marketing and operations research.
Learn more about where management science started and why it's today's hero of global business practice.