Ding, Wei; Fan, Cuihong; Wolfstetter, Elmar - 2010
We consider takeover bidding in a Cournot oligopoly when firms have private information concerning the synergy effect … of merging with a takeover target. Two auction rules are considered: standard first-price and profit-share auctions …, supplemented by entry fees. Since non-merged firms benefit from a merger if the synergies are low, bidders are subject to a …