But it is possible to prove one property of the minimal overbid
9) This finding is consistent with previous experimental literature on contests, which document that on average subjects overbid
relative to the theoretical predictions in the range from 20% to 200% (Morgan, Orzen, and Sefton 2012; Sheremeta 2011).
The OFT acted over so-called 'cover pricing' where contractors uninterested in a job overbid
for a tender, allowing another firm to secure work with an inflated price.
However, only 12 percent of bidders systematically overbid
Worse yet, the brokers crossed the line from questionable ethical practice into downright criminal activity by rigging the bidding process and asking other insurers to overbid
on business in exchange for future favors.
procedures have been established by the United States Bankruptcy Court for the Southern District of California.
Challenger platform TPS recently overbid
Canal Plus Group for Warner and Disney movie packages.
It can make life more difficult for competing bidders by negotiating with the debtor ground rules for the overbid
on this hand gave declarer the chance to show their card playing ability.
We had to make sure that the details were covered very thoroughly and to make sure that no one overbid
us," Barden recalls.
I started bidding in Dutch guilders," as she tells it, "and I overbid
and had to dash to the lobby and call my bank.
In a parallel step, the French group Elf Aquitaine had made a bid for Saga with an 8 % overbid
in relation to Norsk Hydro's offer.
An astute buyer, represented by competent counsel, will seek to offset some of the drawbacks of potentially losing the sale with an overbid
and sale procedures motion.
Previous studies suggest that due to irrationality, hubris, miscalculation, the "winner's curse," or managerial objectives other than stockholder wealth maximization, some bidding firms may often simply overbid
for their respective targets (Boebel and Harris |5~, Giammarino and Heinkel |9~, Morck, Shleifer, and Vishny |18~, Roll |21~, Ruback |22~, Shleifer and Vishny |25~, and Varaiya and Ferris |27~).
The title of the book, The Winner's Curse, is derived from the observation that the winning bidder in an auction is likely to have overbid
when the number of competing bidders is large.