Jump Bidding in Takeover Auctions
University of Ottawa - Telfer School of Management
University of Ottawa, Telfer School of Management
March 1, 2006
Economics Letters, Vol. 92, pp. 339-341, 2006
This paper shows that the target’s ability to reject the highest offer makes bidders unwilling to reveal their private signals. In particular, such ability precludes bidders from using jump bidding to signal their high values to deter competition. This paper appeals for an alternative explanation of the existence of jump bidding in takeover auctions.
Keywords: Auction, Takeover
JEL Classification: C72, G34Accepted Paper Series
Date posted: April 10, 2010
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo7 in 0.344 seconds