We model takeovers as a bargaining process and explain termination fees for, both, the target and the acquirer, subject … to parties’ bargaining power and outside options. In equilibrium, termination fees are offered by firms with outside … options in exchange for a greater share of merger synergies. Termination fees decrease in firms’ bargaining power, and …

We model takeovers as a bargaining process and explain the existence and net effect of target as well as bidder … termination fees, subject to bargaining power and outside options. In equilibrium, net termination fees (target minus acquirer … fees) are offered by firms with a superior bargaining position in exchange for a greater share of merger synergies. This …

We analyze the effect of liquidated damage rules in exclusive contracts that are negotiated in a sequential bargaining … bargaining power influence the size of the payment of damages and determine which contractual party benefits from including …

This paper studies a two-sided incomplete information bargaining model between a seller and a buyer. The buyer has an … outside option, which is modeled as a sequential search process during which he can also choose to return to bargaining at any …, in contrast to bargaining with complete information, the option to return to bargaining is not redundant in equilibrium …

agent with bargaining power. In the first stage the parties bargain over the base wage and the profit share. In the second … invariant both to the imperfections prevailing in the equity market and to the relative bargaining power of the negotiating …

This paper investigates the effect of potential competition on takeovers which we model as a bargaining game with …

pricing and bargaining when price takers buy at posted prices but bargainers attempt to negotiate discounts.  The optimal … bargaining strategy involves the firms offering bargainers randomly-sized discounts.  Competing firms keep posted prices high to …' strategic decision about how much bargaining discretion sales staff should be allowed.  Both firms allowing full bargaining …

This paper provides strategic foundations for the insight that the bargaining power of employees depends on the firm … bargaining (i.e., the negotiators' alternatives to bargaining (i.e., the negotiatior's fall back positions and outside options …): they affect the nature of the bargaining process itself. This approach leads to a new theory of wage determination. …