| 来源类型 | Discussion paper
|
| 规范类型 | 论文
|
| 来源ID | DP6168
|
| DP6168 Why a Group Needs a Leader: Decision-making and Debate in Committees. |
| Wouter Dessein
|
| 发表日期 | 2007-03-09
|
| 出版年 | 2007
|
| 语种 | 英语
|
| 摘要 | This paper proposes an explanation of merger waves based on the interaction between competitive pressure and irreversibility of mergers in an uncertain environment. A set of acquirers compete over time for scarce targets. At each point in time, an acquirer can either postpone a takeover attempt, or raid immediately. By postponing the takeover attempt, an acquirer may gain from more favourable future market conditions, but runs the risk of being preempted by rivals. First, a complete information model is considered, and it is shown that the above tradeoff leads to a continuum of subgame perfect equilibria in monotone strategies that are strictly Pareto ranked. All these equilibria share the feature that all acquirers rush simultaneously in merger waves. The model is then extended to a dynamic global game by introducing slightly noisy private information about merger profitability. This game is shown to have a unique Markov perfect Bayesian equilibrium in monotone strategies, and the timing of the merger wave can thus be predicted. Last, the comparative dynamics predictions of the model are related to stylized facts. |
| 主题 | Industrial Organization
|
| 关键词 | Dynamic global games
Merger waves
Preemption
Real options games
|
| URL | https://cepr.org/publications/dp6168
|
| 来源智库 | Centre for Economic Policy Research (United Kingdom)
|
| 资源类型 | 智库出版物
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| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/535006
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推荐引用方式
GB/T 7714 |
Wouter Dessein. DP6168 Why a Group Needs a Leader: Decision-making and Debate in Committees.. 2007.
|
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