Dodonova, Anna; Khoroshilov, Yuri - In: Games 12 (2021) 2, pp. 1-10
This paper presents the results of an experimental study of takeover auctions with toeholds. Consistent with the theory … 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 …