We study the effect of cross-shareholding among two competing firms on their bidding behavior and the expected sales revenue for the seller in an auction environment. The bidders’ private signals are independent, and the model encompasses the private values model and a particular common value...

"This paper presents a theory of competition for political leadership between incumbent leaders and their challengers in which the possible equilibrium political market structures range from pure monopoly (unchallenged dictatorship) to perfectly competitive (ideal democracy). Leaders are...