Study on the High-Tech Sale through Auctions

This paper deals with the security voting structure in an auction mechanism used to sell an item of high-tech. The design of security voting structure allows the seller to choose between two objectives that are not mutually consistent. The security voting structure design trades off between sell all the shares and retain some shares to benefit from the future dividends generated by the winner. However, if the seller wants to maximize his revenue, he should retain some shares to benefit from the future dividends generated by the acquirer. On the other hand, if he wants to sell his high-tech to the most efficient candidate, he should sell all the shares.