Professor Baker studies how different financial market participants interact through trade to determine asset prices. His research also connects financial markets to the real economy. Much of his work applies to crude oil markets or to economies where participants disagree about how markets are likely to behave.

Professor Baker's work has been presented at leading business schools and conferences. Before earning his Ph.D. in Financial Economics, Professor Baker had a career as a Computer Scientist at Raytheon Company, working on experimental real-time distributed systems.