We address whether the joint bidding by private equity consortiums facilitates collusion in the takeover market. We employ a sample of 870 takeovers of publicly traded targets in the 2003 to 2007 period, the time period which is the focus of investigation by the Justice Department and the source...

We contrast the winner's curse hypothesis and the competitive market hypothesis as potential explanations for the observed returns to bidders in corporate takeovers. The winner's curse hypothesis posits suboptimal behavior in which winning bidders fail to adapt their strategies to the level of...

Recommended readings (Machine generated): Alchian, Armen A. and Harold Demsetz (1972), 'Production, Information Costs, and Economic Organization,' American Economic Review, 62, December, 777-95. -- Andrade, Gregor, Mark Mitchell and Erik Stafford (2001), 'New Evidence and Perspectives on...