This paper develops a model of takeover auctions with a two-step information acquisition process. It shows that the threat of extra information acquisition allows the existence of the signaling jump-bidding equilibrium even when the seller is able to change its reserve price on the basis of the...

This paper presents the results of an experimental study on how people use their private information to estimate the “fair” futures price, and how the quality of this information affects the traders' behavior and desire to trade. It finds that subjects are able to use their information...