Erik Madsen’s research focuses on microeconomic theory, dynamic contracting and incentives, and industrial organization. His recent work studies optimal project termination with an informed agent, and price cutting and business stealing in imperfect cartels. He is currently studying the dynamics of markets where firms raise funds, e.g. venture capital investment in entrepreneurial firms and initial public offerings of equity in mature firms. He is particularly interested in how to design fundraising procedures to trade off the benefits of aggregating information across investors against the costs of freeriding on costly price discovery activities.
Madsen received the Josephine De Karman Fellowship in 2010–11 and won the George W. Housner Award for Academic Excellence and Original Research presented by California Institute of Technology in 2011.
Madsen recently completed his PhD in economic analysis and policy at Stanford University School of Business, where he was awarded an NSF Graduate Research Fellowship. Madsen holds a BS in physics and economics from California Institute of Technology.