Arbeitspapier

Horizontal mergers with synergies: first-price vs. profit-share auction

We consider takeover bidding in a Cournot oligopoly when firms have private information concerning the synergy effect of merging with a takeover target. Two auction rules are considered: standard first-price and profit-share auctions, supplemented by entry fees. Since non-merged firms benefit from a merger if the synergies are low, bidders are subject to a positive externality. Nevertheless, pooling does not occur; and the profit-share auction is strictly more profitable than the first-price auction, regardless of whether firms observe the synergy parameter or only the winning bid before they play the oligopoly game.

Sprache
Englisch

Erschienen in
Series: SFB/TR 15 Discussion Paper ; No. 336

Klassifikation
Wirtschaft
Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance
Auctions
Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
Oligopoly and Other Imperfect Markets
Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
Thema
Horizontal mergers
takeovers
auctions
externalities
oligopoly
Übernahme
Auktionstheorie
Synergie
Asymmetrische Information
Oligopol
Spieltheorie
Theorie

Ereignis
Geistige Schöpfung
(wer)
Ding, Wei
Fan, Cuihong
Wolfstetter, Elmar G.
Ereignis
Veröffentlichung
(wer)
Sonderforschungsbereich/Transregio 15 - Governance and the Efficiency of Economic Systems (GESY)
(wo)
München
(wann)
2010

DOI
doi:10.5282/ubm/epub.13218
Handle
URN
urn:nbn:de:bvb:19-epub-13218-0
Letzte Aktualisierung
10.03.2025, 11:41 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Ding, Wei
  • Fan, Cuihong
  • Wolfstetter, Elmar G.
  • Sonderforschungsbereich/Transregio 15 - Governance and the Efficiency of Economic Systems (GESY)

Entstanden

  • 2010

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