Yair Tauman

Professor of Economics | Game Theory & Industrial Organization

Welcome

Professor Yair Tauman

Professor Yair Tauman is a distinguished economist and mathematician specializing in game theory and industrial organization. He serves as a Leading Professor at the State University of New York, Stony Brook, where he is also the Director of the Stony Brook Center for Game Theory.

Born on January 20, 1948, Professor Tauman has made significant contributions to economic theory, with publications in leading journals including Econometrica, Games and Economic Behavior, Journal of Economic Theory, Quarterly Journal of Economics, and RAND Journal of Economics.

Current Positions

Stony Brook University, New York:

• Leading Professor, Department of Economics (since 1989)

• Director, Stony Brook Center for Game Theory (since 1999)

Reichman University (IDC), Herzliya, Israel:

• Dean, Adelson School of Entrepreneurship and Innovation (since 2015)

• Academic Director, Zell Entrepreneurship Program (since 2009)

Biography

Education

Professor Tauman completed his academic training at the Hebrew University of Jerusalem, one of the world's leading institutions in mathematics and economics:

Academic Career

Professor Tauman has held prestigious positions at leading universities throughout his career. He was a professor at Tel Aviv University for 25 years until 2009, and previously served as a professor at the Kellogg Graduate School of Management at Northwestern University.

At Stony Brook University since 1989, Professor Tauman has been instrumental in establishing the Center for Game Theory, which he has directed since 1999. The center has become a major hub for game theory research, hosting the International Summer Conferences in Game Theory for over 30 years.

Leadership and Entrepreneurship

Beyond academia, Professor Tauman has demonstrated remarkable leadership in business and entrepreneurship. He served as Dean of the Arison School of Business at the Interdisciplinary Center (IDC) in Herzliya from 2010 to 2011, and has been Dean of the Adelson School of Entrepreneurship since 2015.

In 2005, Professor Tauman led a group of Israeli investors in a successful intervention in the takeover of online auction company QXL, which was subsequently sold for $1.9 billion. He co-founded Bidorbuy.com and has served on the boards of several companies including ADFVN, Radware, and Bank Hapoalim (since 2011).

Film and Public Engagement

Professor Tauman produced a documentary film about his sister, entitled "My Sister Tikva: A Holocaust Journey," which was named best international film at the Chagrin Documentary Film Festival. He has also delivered TEDx talks on game theory, making complex economic concepts accessible to broader audiences.

Family

Professor Tauman is the father of Yael Tauman Kalai, a renowned cryptographer and professor at MIT and Microsoft Research.

Research Interests

Primary Research Areas

Professor Tauman's research focuses on two main areas that have significant theoretical and practical applications:

Game Theory

Game theory provides a mathematical framework for analyzing strategic interactions between rational decision-makers. Professor Tauman's work in this area includes:

  • Non-diagonal axiomatic values
  • Cost-sharing mechanisms
  • Strategic information transmission
  • Deterrence games
  • Patent licensing models

Industrial Organization

This field examines how firms compete in markets and how market structures affect economic outcomes. Professor Tauman's contributions include:

  • Patent licensing strategies (fees vs. royalties)
  • Innovation incentives
  • Market entry and competition
  • Merger analysis
  • Pricing mechanisms

Key Contributions

One of Professor Tauman's most influential works is his research on patent licensing, particularly the comparison between fixed fees and per-unit royalties. His seminal paper "Fees versus Royalties and the Private Value of a Patent" (with M. Kamien, Quarterly Journal of Economics, 1986) has become a cornerstone in the economics of innovation literature.

His work on cost allocation and incentive compatibility has important applications in public economics and mechanism design, addressing fundamental questions about how to fairly distribute costs in situations involving public goods or shared resources.

Publications

Recent Publications (2018-today)

Siyu Ma, Debapriya Sen, and Yair Tauman
Economic Theory, June 2024

Analysis of three-part tariff licensing schemes combining upfront fees, per unit royalties, and ad valorem royalties in Cournot oligopoly.

Siyu Ma, Yair Tauman, and Richard Zeckhauser
International Journal of Game Theory, August 2023

Analysis of deterrence scenarios where a Retaliator threatens an Underminer taking stealth threatening moves.

Alexis Anagnostopoulos, Eva Carceles-Poveda, and Yair Tauman
International Economic Review, 2021

Alternative to equal weights utilitarianism with endogenous social welfare weights.

Yair Tauman and Chang Zhao
International Journal of Industrial Organization, 2018, Vol. 56(C), pages 229-276

Economic impact of process innovations through license auctions to potential entrants and incumbent firms.

Artyom Jelnov, Yair Tauman, and Richard Zeckhauser
European Journal of Political Economy, 2018, Vol. 54(C), pages 124-143
Patent licensing in a Cournot oligopoly: General results
Debapriya Sen and Yair Tauman
Mathematical Social Sciences, 2018

Classic Publications

Incentive-Compatible Cost-Allocation Schemes
David Schmeidler and Yair Tauman
Journal of Economic Theory, 1994, Vol. 63, pp. 189-207
The Value of Information in a Strategic Conflict
M. Kamien, Yair Tauman, and S. Zamir
Games and Economic Behavior, 1990, Vol. 2, 129-153
M. Kamien and Yair Tauman
Quarterly Journal of Economics, 1986, Vol. 101, 471-491

Seminal work comparing patent licensing mechanisms.

Supportability, Sustainability and Subsidy Free Prices
L. Mirman, Yair Tauman, and I. Zang
RAND Journal of Economics, 1985, Vol. 16, pp. 114-126
The Determination of the Marginal Cost Prices under a Set of Axioms
D. Samet and Yair Tauman
Econometrica, 1982, Vol. 50, pp. 895-909
The Continuity of the Aumann-Shapley Price Mechanism
L. Mirman and Yair Tauman
Journal of Mathematical Economics, 1982, Vol. 9, pp. 235-249
The Partition Value
A. Neyman and Yair Tauman
Mathematics of Operations Research, 1979, Vol. 4, 236-264
A Non-Diagonal Value on a Reproducing Space
Yair Tauman
Mathematics of Operations Research, 1977, Vol. 2, pp. 331-337
The Existence of Non-Diagonal Axiomatic Values
A. Neyman and Yair Tauman
Mathematics of Operations Research, 1976, Vol. 1, pp. 246-250

News & Activities

Academic Leadership at Reichman University

Ongoing since 2015

Professor Tauman continues to serve as Dean of the Adelson School of Entrepreneurship and Innovation at Reichman University (IDC) in Herzliya, Israel.

International Summer Conferences in Game Theory

Annual Series - 30+ Years

Professor Tauman has organized the International Summer Conferences in Game Theory at Stony Brook University for over three decades.

Contact Information

Stony Brook University

Office: N-635 Social and Behavioral Sciences Building

Phone: (631) 632-7557

Email: yair.tauman@stonybrook.edu

Reichman University (IDC), Israel

Email: amty21@gmail.com