We analyze optimal auction mechanisms when bidders base costly entry decisions on their valuations, and bidders pay with a fixed royalty rate plus cash. With sufficient valuation uncertainty relative to entry costs, the optimal mechanism features asymmetry so that bidders enter with strictly...

We integrate heterogeneity and uncertainty in investor valuations into a model of takeovers. Investors have dispersed valuations, holding shares in firms they value more highly, and a successful offer must win approval from the median target shareholder. We derive the consequences for an...

A recent information design literature focuses on the value to buyers of acquiring strategically-designed information about their valuation to induce a monopolist to set lower prices. We highlight the value of commitments to not acquire information if excessively high prices are offered, thereby...