Bikhchandani, Sushil; Lippman, Steven A.; Ryan, Reade - In: The B.E. Journal of Theoretical Economics 5 (2005) 1
When the seller of an asset grants a right-of-first-refusal to a buyer, this special buyer has the opportunity to purchase the asset at the best price the seller can obtain from the other potential buyers. We show that the right-of-first-refusal is inefficient, and it benefits the special buyer...
