Microtheory research seminar: Competing for innovation
Issued: Thu, 14 Nov 2019 16:46:00 GMT
Date: Tuesday 26 November 2019
Time: 4pm - 5:30pm
Venue: Main Building Lecture Theatre 206
Category: Academic events
Audience: Academic staff and doctoral students
Dr Adrien Vigier of the Norwegian Business School will present his research entitled 'Competing for Innovation' at Adam Smith Business School on Tuesday 26 November 2019.
We develop a stylized model of the acquisition of a startup company. Potential buyers arrive sequentially, with early buyers possibly unaware of later buyers' arrival. The buyers face evolving uncertainty regarding the startup's true value and bargain bilaterally with the startup over the price. The startup's reservation price is endogenously determined by offers it expects to receive. We show first that a property common to all equilibria is that acquisition occurs too early relative to the social optimum. Second, this inefficiency is non-monotonic in the degree of competition. We discuss our findings in light of recent research on so-called killer acquisitions.
Adrien Vigier is an Assistant Professor at the Norwegian Business School. Prior to this, Adrien was an Associate Professor at the University of Oxford. He obtained his PhD at the University of Cambridge in 2011, and obtained his postdoctorate at the University of Oslo in 2014. His primary research areas are Game Theory, Microeconomics and Finance.
Please email Sarah McLean at email@example.com for further information about this event.