Dixit received a B.Sc. from Bombay University in 1963 in Mathematics and Physics, a B.A. from Cambridge University in 1965 in Mathematics, and a PhD in 1968 from the Massachusetts Institute of Technology in Economics.
Dixit is currently the John J. F. Sherrerd '52 University Professor of Economics at Princeton University and has been since July 1989. He was previously a professor of Economics and International Affairs. He previously taught at Massachusetts Institute of Technology, atthe University of California, Berkeley, at Balliol College at Oxford University as the Lord Thomson of Fleet Fellow and Lecturer in Economics, and at the University of Warwick.
He has held visiting scholar positions at MIT as well as the International Monetary Fund and the Russell Sage Foundation.
He was President of the Econometric Society in 2001, and was a Vice-President in 2002 and is the President in 2008 of the American Economic Association. He was elected to the American Academy of Arts and Sciences in 1992 and the National Academy of Sciences in 2005.