Takeovers and the Dynamics of Information Flows

@inproceedings{Chemla2003TakeoversAT,
  title={Takeovers and the Dynamics of Information Flows},
  author={Gilles Chemla},
  year={2003}
}
This paper analyzes the e ect of a possible takeover on information ows and on the terms of trade in business relationships. We consider a longterm relationship between a rm and a privately informed stakeholder, say a buyer. In our model, takeovers both increase the surplus from trade and enable the rm to extract a potentially higher share of the surplus… CONTINUE READING