We consider how information concentration affects a seller’s revenue in common value auctions. The common value is a function of <InlineEquation ID="IEq1"> <EquationSource Format="TEX">$$n$$</EquationSource> </InlineEquation> random variables partitioned among <InlineEquation ID="IEq2"> <EquationSource Format="TEX">$$m \le n$$</EquationSource> </InlineEquation> bidders. For each partition, the seller devises an optimal mechanism. We show that whenever the value...</equationsource></inlineequation></equationsource></inlineequation>

By linking industrial organization theory and capital market research, we provide empirical evidence that merger motives of firms are influenced by underlying industry concentration. Analyzing wealth effects on target, acquirer and rival firms in the machinery industry, we observe significant...