We derive equilibrium bidding strategies in divisible good auctions for asymmetrically informed risk neutral and risk averse bidders when there is random noncompetitive demand. The equilibrium bid schedules contain both strategic considerations and explicit allowances for the winner's curse....

We develop a model of a two-division firm in which the “strong†division has,on average, higher quality investment projects than the “weak†division. We show that the firm optimally biases its project selection policy in favor of the weak division and this bias is stronger...

We analyze the two-bidder discriminatory auction with downward sloping marginal valuations and a continuous, variable award. We allow for a common component in marginal valuations and affiliation. We focus on problems that admit solutions with strictly downward sloping bidding schedules. Using...

An experimental approach is used to examine the performance of three different multi-unit auction designs: discriminatory, uniform-price with fixed supply, and uniform-price with endogenous supply. We find that the strategies of the individual bidders and the aggregate demand curves are...

An experimental approach is used to examine the performance of three different multiunit auction designs: discriminatory, uniform-price with fixed supply, and uniform-price with endogenous supply. We find the actual strategies to be inconsistent with theoretically identified equilibrium...

The Modigliani and Miller propositions on the irrelevancy of capital structure and dividends are shown to be valid in a large class of models with asymmetric information. The main assumption is that managerial compensation is chosen optimally. This differs from most recent papers on this topic,...