The announcement of a takeover bid causes significant increases in the target's stock price, but the possibility that a bid is motivated to cause this increase so that the bidder can sell his holdings has not been studied. We show that stock price manipulation lowers the prebid stock price....

This study provides a comparative experimental evaluation of several alternative approaches to the (single-product) monopoly problem. We contrast incentive-compatible decentralized regulatory mechanisms with notions of market contestability in a decreasing-cost environment. The decentralized...

This article explores theoretical and experimental implications of using auctions to reward winners of research tournaments. This process is a hybrid of the research tournament for a prize and a first-price auction held after the research is complete. The bids in the auction consist of a vector...