• DocumentCode
    2206334
  • Title

    The Optimal Timing Game in Merger and Acquisition with Premium under Incomplete Information of Bidders

  • Author

    Lu, Bian ; Hu Wenxiu

  • Author_Institution
    Sch. of Bus. Adm., Xi´´an Univ. of Technol., Xi´´an, China
  • fYear
    2009
  • fDate
    26-28 Dec. 2009
  • Firstpage
    5239
  • Lastpage
    5244
  • Abstract
    This paper examines the optimal threshold value of merger and acquisition with premium by method of real option and optimal stopping time. With the numerical example it is concluded that the ratio of merger and acquisition premium fluctuates reversely with the upper and lower bound of threshold value. Based on the conclusion, the author further analyzes the optimal strategy of merger and acquisition considering of rival´s premium under incomplete information game theoretic and makes some more practical value conclusions.
  • Keywords
    commerce; game theory; bidders incomplete information; incomplete information game theoretic; optimal stopping time; optimal timing game; real option; threshold value; Aluminum; Corporate acquisitions; Cost accounting; Game theory; Information analysis; Information science; Mechanical factors; Production; Timing; Upper bound;
  • fLanguage
    English
  • Publisher
    ieee
  • Conference_Titel
    Information Science and Engineering (ICISE), 2009 1st International Conference on
  • Conference_Location
    Nanjing
  • Print_ISBN
    978-1-4244-4909-5
  • Type

    conf

  • DOI
    10.1109/ICISE.2009.1237
  • Filename
    5454469