We examine the impact of public information on firms’ disclosure strategies. We portray two regimes based on a model that extends the setting of Dye (1985) and Jung and Kwon (1988). In the first regime, the firm is able to respond to public information and thus has the last word, and in the...

We consider a moral hazard issue inherent in the equity auctions of assets such as oil & gas leases and corporate takeovers. After the auction, the winning bidder decides whether to make follow-up investments in the acquired asset and makes the equity payment out of the revenue from it according...

We study the optimal selling mechanism and information disclosure policy for a house seller. The seller can select any selling mechanism, including an auction, and release additional information about the house to buyers. Release of information adjusts the buyers' values and bids. We find that...