Marching to a Different Drummer: Sam Peltzman Reflects on George Stigler

It is one of those hot, sultry October days in Chicago when I make my way to the University’s Graduate School of Business to talk to Sam Peltzman about the life and times of George Stigler. To be more precise, my aim is to discuss how Stigler approached economics and dealt with economic research. Sam Peltzman, of course, had been one of Stigler’s PhD students and was certainly acknowledged (by Stigler) to be one of the best of that select group. To some degree, he was considered by many other academics to be Stigler’s one true protégé. Their mutual respect becomes obvious not simply by examining past comments, but by tracing out their subsequent dealings with each other. Once established at UCLA, Peltzman’s old teacher made strenuous efforts to lure him back, going as far as to guarantee research funds from his own Center. Stigler clearly appreciated him not only for his obvious ability, but also for his willingness to go head to head with anyone when a question concerning economics arose. George Stigler tended to be most comfortable with people who could give as good as they got, in other words, people not dissimilar to him, at least in terms of this character trait. And it is quite true that Sam Peltzman doesn’t suffer from any signs of acute shyness when expressing his clearly held views. While doing archival research, I found a letter to George Stigler from a consultancy discussing the suitability of various members of the Chicago Department of Economics or the Business School as consultants for the private sector. The judgment on Sam Peltzman was distinctly negative. The letter noted that Peltzman was only in the same office with a client for five minutes before managing to insult him. This response apparently didn’t signal either a propensity for tact or a future usefulness as a consultant. One suspects this didn’t faze Sam Peltzman in the least.