Two major ways of acquiring corporate control are by public take-over bid or a minority buyout of a large block holder of shares. Although the latter is less visible, Cynthia Van Hulle and Piet Sercu explore the relative benefits of a private block trade in conditions both with and without a...

The authors argue that it is bargaining, not competition, which determines the way gains are distributed in take-over bids. Focusing on 'unfriendly' take-overs, where the target company's current management leaves, they show how bargaining and bidding interact to generate the take-over price and...

With transaction costs for trading goods, the nominal exchange rate moves within a band around the nominal purchasing power parity (PPP) value. The authors model the behavior of the band and of the exchange rate within the band. The model explains why there are below-unity slope coefficients in...

With transactions costs for trading goods, the nominal exchange rate moves within a band around the nominal PPP value. We model the behavior of the band and of the exchange rate within the band. The model explains why there are below-unity slope coefficients in regression tests of PPP, and why...