Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/257522 
Year of Publication: 
2021
Citation: 
[Journal:] Games [ISSN:] 2073-4336 [Volume:] 12 [Issue:] 2 [Article No.:] 40 [Publisher:] MDPI [Place:] Basel [Year:] 2021 [Pages:] 1-10
Publisher: 
MDPI, Basel
Abstract: 
This paper presents the results of an experimental study of takeover auctions with toeholds. Consistent with the theory, we find a positive effect of toeholds on bidding. Such an effect, however, is of a lower magnitude and the bidding premium function has an opposite slope than the theory predicts, which can be attributed both to risk aversion and subjects' tendency to think of their bids in relative terms. Consistent with the theory we find no cross-bidder toehold effect, however, such a result is inconsistent with the observed bidding function if people expect their opponents to behave the same way as they do.
Subjects: 
auction
takeover
toehold
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
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