Bikhchandani, Sushil; Lippman, Steven; Ryan, Reade - In: Advances in Theoretical Economics 5 (2005) 1, pp. 1194-1194
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...
