Professor Satterthwaite is a microeconomic theorist who has a keen applied interest in how health care markets work. His theoretical work is in two areas. The first is on how market mechanisms, when the number of participants is large, induce individuals to reveal their valuations almost accurately and select almost optimal allocations. The second is the dynamics of competition under entry, exit, and investments into competitive advantage. On the health side, he is concerned with how consumer information affects competition among physicians and how the prices for hospital services are determined within a managed care environment.