Download or read book Auctions Vs Negotiations written by Jeremy Bulow and published by . This book was released on 1994 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: Which is the more profitable way to sell a company: a public auction or an optimally structured negotiation with a smaller number of bidders? We show that under standard assumptions the public auction is always preferable, even if it forfeits all the seller's negotiating power, including the ability to withdraw the object from sale, provided that it attracts at least one extra bidder. An immediate public auction also dominates negotiating while maintaining the right to hold an auction subsequently with more bidders. The results hold for both the standard independent private values model and a common values model. They suggest that the value of negotiating skill is small relative to the value of additional competition.
Download or read book Negotiation Auction Or Negotiauction Evidence from the Field written by Tingting Liu and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: We connect the extensive theoretical negotiation and auction literature to real-world practice using a rich, hand-collected data set offering a comprehensive picture of high-stake merger and acquisition (M&A) negotiations for 322 deals that aggregate more than $2.4 trillion in deal value. We find that a full-scale auction is not a common way to sell a firm, and about 75% of our sample deals switch to negotiating with only one buyer in the final stage of the sale process. Moreover, the majority of our sample involves a fluid deal process that changes the nature of the deal (negotiation or auction) as the process proceeds. Most initiating bidders have higher valuations for the target and are the eventual winning bidders. On average, it takes two to three months for the merging parties to reach an agreement on offer prices, and the delay is related to information asymmetry, valuation uncertainty, and potential outside options. Most bidders experiment with offers, but the final premiums are largely similar regardless of the number of offers made by the bidder. About half of the target firms make counteroffers during negotiation; most of the time, the target and the bidder split the price differences. The empirical patterns we document challenge some common assumptions on which much of auction theory is based. Our findings call for further developments in theories that consider the inherent interconnectedness between auctions and negotiations as in the real world.
Download or read book Auctions Vs Negotiations The Case of Favoritism written by Vitali Gretschko and published by . This book was released on 2012 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Auctions Versus Negotiations in Procurement written by Patrick L. Bajari and published by . This book was released on 2003 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: Should the buyer of a customized good use competitive bidding or negotiation to select a contractor? To shed light on this question, we offer a framework that compares auctions with negotiations. We then examine a comprehensive data set of private sector building contracts awarded in Northern California during the years 1995-2000. The analysis suggests a number of potential limitations to the use of auctions. Auctions perform poorly when projects are complex, contractual design is incomplete and there are few available bidders. Furthermore, auctions stifle communication between buyers and the sellers, preventing the buyer from utilizing the contractor's expertise when designing the project. Some implications of these results for procurement in the public sector are discussed
Download or read book Auctions Vs Negotiations in Vertically Related Markets written by Emanuele Bacchiega and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: In a two-tier industry with bottleneck upstream and two downstream firms producing vertically differentiated goods, we identify conditions under which the upstream supplier chooses exclusive or non-exclusive negotiations, or an English auction to sell its essential input. Auctioning off a two-part tariff contract is optimal for the supplier when its bar- gaining power is low and the final goods are not too differentiated. Otherwise, the supplier enters into exclusive or non-exclusive negotiations with the downstream firm(s). Finally, in contrast to previous findings, an auction is never welfare superior to negotiations.
Download or read book Auctions Versus Private Negotiations in Buyer Seller Networks written by Alison C. Watts and published by . This book was released on 2015 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: Buyer-seller networks where price is determined by an ascending-bid auction are important in many economic examples such as certain real estate markets, radio spectrum sharing, and buyer-supplier networks. However, it may be that some sellers are better off not participating in the auction. We consider what happens if sellers can make a take it or leave it offer to one of their linked buyers before the auction takes place and thus such a seller can choose not to participate in the auction. We give conditions on the graph and buyers valuations under which the buyer and seller will both agree to such a take it or leave it offer. Specifically, the buyer-seller pair will choose private negotiation over the auction if the seller acts as a network bridge with power over the buyer and if there are enough buyers with low valuations so that the seller does not expect to receive a high price in the auction.
Download or read book The Nature of Purchasing written by Florian Schupp and published by Springer Nature. This book was released on 2020-05-20 with total page 326 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book was created in the spirit of learning from nature in the field of professional purchasing. It describes real-world purchasing problems faced by companies as well as individuals and presents natural hands-on solutions that apply scientific approaches. The book answers what the core of purchasing could be, the inner structure of it or in other words the natural way. Nature masters effectiveness based on immanent laws and ensures efficiency by best results for minimal invest. Especially in complex and ambiguous situations, purchasers benefit from this book by understanding the broader context with the help of recent scientific research. Focusing on the problems that purchasers face in managerial practice rather than oversimplified generalizations, the book features step-by-step explanations, allowing readers to find tailored solutions to address challenges in key purchasing areas. The book was written in collaboration and with the help of experts in purchasing and logistics, biology, law and economics, human resource development, media and sports, and merges perspectives from theory and practice to provide natural strategies for purchasers.
Download or read book Auctions Versus Negotiations written by Chia-Hui Chen and published by . This book was released on 2013 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Auctions are a popular and prevalent form of trading mechanism, despite the restriction that the seller cannot price-discriminate among potential buyers. To understand why this is the case, we consider an auction-like environment in which a seller with an indivisible object negotiates with two asymmetric buyers to determine who obtains the object and at what price. The trading process resembles the Dutch auction, except that the seller is allowed to offer different prices to different buyers. We show that when the seller can commit to a price path in advance, the optimal outcome can generally be implemented. When the seller lacks such commitment power, however, there instead exists an equilibrium in which the seller's expected payoff is driven down to the second-price auction level. Our analysis suggests that having the discretion to price discriminate is not necessarily beneficial for the seller, and even harmful under plausible conditions, which could explain the pervasive use of auctions in practice.
Download or read book Game Theory Bargaining and Auction Strategies written by Gregor Berz and published by Springer. This book was released on 2016-04-30 with total page 202 pages. Available in PDF, EPUB and Kindle. Book excerpt: This text bridges the gulf between theoretical economic principles of negotiation and auction theory and their multifaceted applications in actual practice. It is intended to be a supplement to the already existing literature, as a comprehensive collection of reports detailing experiences and results of very different negotiations and auctions.
Download or read book Auctions Vs Negotiations written by Fabian Herweg and published by . This book was released on 2014 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: For the procurement of complex goods the early exchange of information is important to avoid costly renegotiation ex post. We show that this is achieved by bilateral negotiations but not by auctions. Negotiations strictly outperforms auctions if sellers are likely to have superior information about possible design improvements, if renegotiation is costly, and if the buyer's bargaining position is sufficiently strong. Moreover, we show that negotiations provide stronger incentives for sellers to investigate possible design improvements than auctions. This provides an explanation for the widespread use of negotiations as a procurement mechanism in private industry.
Download or read book Auctions Versus Negotiations written by Jeremy I. Bulow and published by . This book was released on 1993 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Auction Vs Negotiations written by Fabian Herweg and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Auctions Vs Negotiations written by and published by . This book was released on 1994 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Mergers and Acquisitions For Dummies written by Bill R. Snow and published by John Wiley & Sons. This book was released on 2011-05-09 with total page 360 pages. Available in PDF, EPUB and Kindle. Book excerpt: The easy way to make smart business transactions Are you a business owner, investor, venture capitalist, or member of a private equity firm looking to grow your business by getting involved in a merger with, or acquisition of, another company? Are you looking for a plain-English guide to how mergers and acquisitions can affect your investments? Look no further. Mergers & Acquisitions For Dummies explains the entire process step by step?from the different types of transactions and structures to raising funds and partnering. Plus, you'll get expert advice on identifying targets, business valuation, doing due diligence, closing the purchase agreement, and integrating new employees and new ways of doing business. Step-by-step techniques and real-world advice for making successful mergers and acquisitions Covers international laws and regulations How to take advantage of high-value deals Going beyond the case studies of other books, Mergers & Acquisitions For Dummies is your one-stop reference for making business growth a success.
Download or read book Auctions Vs Negotiations written by Mengxi Zhang and published by . This book was released on 2018 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper studies the design of the revenue maximizing selling mechanism in a scenario where bidders can make costly investments upfront to enhance their valuations. Unlike the case where bidders' values are exogenously fixed, here it may be profitable for the seller to discriminate among ex ante symmetric bidders. I first identify a sufficient and almost necessary condition under which symmetric auctions are optimal. When this condition fails, the optimal selling mechanism may be discriminatory. I further find that the optimal mechanism in general follows a structure which I call a threshold mechanism. Two extreme examples of the threshold mechanism are symmetric auctions and sequential negotiations. In general, any threshold mechanism can be implemented by a dynamic selling scheme which alternately utilizes auctions and negotiations.
Download or read book System of Negotiations written by René Schumann and published by Springer Nature. This book was released on 2023-04-08 with total page 136 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book presents criteria and recommendations for successful negotiations. The System of Negotiations, which was developed on a scientific basis for this purpose, clearly illustrates the most important steps, tools and applications. By using game theory and behavioral economics, the success of negotiations in purchasing can be systematically maximized. At the same time, transparency and fairness offer a high level of acceptance among negotiating partners. To this end, numerous practical examples are used to show how contracts can be awarded in the event of competition between suppliers, and how various auction formats and differentiated communication can be used to achieve optimal savings potential. Also for situations where the supplier is a monopolist, ways are described to avoid being at the mercy of pricing power.
Download or read book Game Theory Bargaining and Auction Strategies written by G. Berz and published by Palgrave Macmillan. This book was released on 2014-01-14 with total page 193 pages. Available in PDF, EPUB and Kindle. Book excerpt: This text bridges the gulf between theoretical economic principles of negotiation and auction theory and their multifaceted applications in actual practice. It is intended to be a supplement to the already existing literature, as a comprehensive collection of reports detailing experiences and results of very different negotiations and auctions.
