Research seminar by Yuri Khoroshilov (University of Ottawa): «Preemptive Bidding in Takeover Auctions: An Experimental Study»
Thursday, December 2 International College of Economics and Finance and Centre for Advanced Studies held the Research seminar.
Venue: Pokrovski Bulvar, 11, Room Zh-822
Speaker: Yuri Khoroshilov (University of Ottawa)
Theme: «Preemptive Bidding in Takeover Auctions: An Experimental Study»
Abstract: This paper presents an experimental test of preemptive jump bidding hypothesis in takeover auctions with entry costs. It provides support for the signaling hypothesis behind jump bidding and analyzes how the size of the entry costs affects the bidders’ behavior. It also shows that jump bidding allows the reallocation of the surplus from the target firm to the first bidder but has little effect on the total surplus and the profit of the second bidder.