policies. While academic research has largely dismissed the procedure owing to its tendency to encourage overbidding, central … an auction-theoretic setting with private information about declining marginal valuations. Since overbidding entails … exposure risk, an equilibrium may exist even if bids are costless and the intended volume is pre-announced. In fact, the …

between the bidders? valuation. We consider risk neutral bidders who compete for the control of a target firm in which they …. Particularly, we found that if a potential bidder overbids when he gets toeholds in the target firm, the extent of overbidding is …

large capacity constraints mitigate the overbidding that plagues single-unit auctions and is one of the most robust …