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Successful Takeovers without Exclusion

dc.contributor.authorBagnoli, Marken_US
dc.contributor.authorLipman, Barton L.en_US
dc.date.accessioned2013-11-14T23:21:06Z
dc.date.available2013-11-14T23:21:06Z
dc.date.issued1987-08en_US
dc.identifier.otherMichU DeptE CenREST W87-13en_US
dc.identifier.otherG340en_US
dc.identifier.urihttps://hdl.handle.net/2027.42/100765
dc.description.abstractWhile most takeover models assume atomistic stock-holders, we analyze a single-raider model with finitely many stockholders. Because the raider can always make some stockholders pivotal, he can overcome the free-rider problem identified by Grossman and Hart (1980) and others in atomistics-stockholder models and profitably take over even without exclusion. One might expect that it would be harder for the raider to make stockholders of more widely held firms pivotal and that exclusion would thus become necessary; however, the infinite-stockholder game cannot yield this conclusion. We also consider the limit of the finite-stockholder game and give conditions under which exclusion is unnecessary. Finally, we show that exclusion leads to the possibility of inefficient takeovers.en_US
dc.description.sponsorshipCenter for Research on Economic and Social Theory, Department of Economics, University of Michiganen_US
dc.relation.ispartofseriesCREST Working Paperen_US
dc.subjectFree-rider Problemen_US
dc.subjectAtomistic Stock-holdersen_US
dc.subject.otherMergersen_US
dc.subject.otherAcquisitionsen_US
dc.subject.otherRestructuringen_US
dc.subject.otherVotingen_US
dc.subject.otherProxy Contestsen_US
dc.subject.otherCorporate Governanceen_US
dc.titleSuccessful Takeovers without Exclusionen_US
dc.typeWorking Paperen_US
dc.subject.hlbsecondlevelEconomicsen_US
dc.subject.hlbtoplevelSocial Sciencesen_US
dc.description.bitstreamurlhttp://deepblue.lib.umich.edu/bitstream/2027.42/100765/1/ECON022.pdf
dc.owningcollnameEconomics, Department of - Working Papers Series


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