Sequential Decision-Making and Asymmetric Equilibria: An Application to Takeovers

David Gill, Trinity College, University of Oxford
Daniel Sgroi, Faculty of Economics and Churchill College, University of Cambridge

A BEJTE Topics article.

Abstract

With indivisible shareholdings and simultaneous shareholder decision-making, the existing takeover literature provides a reasonable profit only in asymmetric equilibria. We allow the raider to approach shareholders sequentially and thereby find a unique equilibrium that produces the same outcome.

Submitted: August 31, 2004 · Accepted: December 24, 2004 · Published: December 28, 2004

Originally published in Topics in Theoretical Economics.

Recommended Citation

Gill, David and Sgroi, Daniel (2004) "Sequential Decision-Making and Asymmetric Equilibria: An Application to Takeovers," Topics in Theoretical Economics: Vol. 4 : Iss. 1, Article 11.
Available at: http://www.bepress.com/bejte/topics/vol4/iss1/art11

 
 
 
 

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