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Information, Competition, and Auction versus Negotiated Merger
Hoang, Ngoc Giang - 2013
Intuition suggests that an auction maximizes revenue for the seller; yet empirically, many companies sell their businesses in a negotiation with one buyer. I argue that, when potential buyers are market competitors, an auction may generate lower revenue for the seller. First, in an auction,...
Persistent link: https://www.econbiz.de/10014151426
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Mergers in Bidding Markets
Janssen, Maarten - 2013
We analyze the effects of mergers in first-price sealed-bid auctions on bidders' equilibrium bidding functions and on revenue. We also study the incentives of bidders to merge given the private information they have. We develop two models, depending on how after-merger valuations are created. In...
Persistent link: https://www.econbiz.de/10013088780
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Competition, Auctions & Negotiations in REIT Takeovers
Mulherin, J. Harold - 2016
The lack of hostile takeovers and relatively modest wealth gains associated with REIT mergers motivate two fundamental yet previously unexplored questions: how competitive are REIT takeovers, and how exactly does a REIT sell itself to another firm? This paper examines these questions using...
Persistent link: https://www.econbiz.de/10013007716
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Risk, reward and uncertainty in buyer-seller transactions : the seller's view on combining posted prices and auctions
Ivanova-Stenzel, Radosveta; Kröger, Sabine - 2023
In Buy-It-Now auctions, sellers can post a take-it-or-leave-it price offer prior to an auction. While the literature almost exclusively looks at buyers in such combined mechanisms, the current paper summarizes results from the sellers' point of view. Buy-It-Now auctions are complex mechanisms...
Persistent link: https://www.econbiz.de/10014477420
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Price discovery and gains from trade in asset markets with insider trading
Brünner, Tobias; Levínský, René - 2020
The present study contributes to the ongoing debate on possible costs and benefits of insider trading. We present a novel call auction model with insider information. Our model predicts that more insider information improves informational efficiency of prices, but this comes at the expense of...
Persistent link: https://www.econbiz.de/10012437539
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Strategic decisions in takeover auctions
Eckbo, B. Espen; Malenko, Andrey; Thorburn, Karin S. - 2019
decisions involved in any corporate takeover attempt: (1) deal initiation, (2) pre-offer toehold acquisition, (3) offer price … made in takeover negotiations where the outside option is the outcome of an open auction. Empirical findings include the … and not the bidder. (2) Notwithstanding takeover premiums averaging 40+%, only a small fraction (less than 5%) of bidders …
Persistent link: https://www.econbiz.de/10012120485
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Corporate takeovers : modern empirical developments
Eckbo, B. Espen - 2011
a review of actual takeover premiums and their determinants. It then showcases recent empirical contributions on topics … auctions cause fire-sales?), effects of deal protection devices (do termination agreements and poison pills affect takeover … premiums?), large shareholder voting on takeover outcomes (does institutional activism matter?), deal financing issues (does it …
Persistent link: https://www.econbiz.de/10008906523
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Entry and Competition in Takeover Auctions
Gentry, Matthew L. - 2018
We estimate the degree of uncertainty faced by potential bidders in takeover auctions and quantify how it affects … prices, even though auctions are preferred in takeover markets with high uncertainty, while the reverse is true for …
Persistent link: https://www.econbiz.de/10012938019
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Asymmetric information in auctions : are resellers better appraisers?
Koptyug, Nikita - 2016
This paper shows that in online car auctions, resellers are better at appraising the value of the cars they are bidding on than are consumers. Using a unique data set of online car auctions, I show that differences in bidding behavior between resellers and consumers can be explained by...
Persistent link: https://www.econbiz.de/10011430656
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Bayesian implementation and rent extraction in a multi-dimensional procurement problem
Herweg, Fabian; Schmidt, Klaus M. - 2018
We consider a multi-dimensional procurement problem in which sellers have private information about their costs and about a possible design flaw. The information about the design flaw is necessarily correlated. We solve for the optimal Bayesian procurement mechanism that implements the efficient...
Persistent link: https://www.econbiz.de/10011976063