Yuri Khoroshilov, Assistant Professor at the Telfer School of Management, received $59,795 from the Social Sciences and Humanities Research Council of Canada (SSHRC) for his research project entitled An Experimental Study of Jump and Shill Bidding in English Auctions and its Effect on the Takeover Contest.
The goal of this research is to construct an improved model of takeover auctions by understanding how the target firm’s ability of renegotiate a final price with the winning bidder affects the behaviour of both the bidder and the firm targeted for takeover. Professor Khoroshilov will examine the underlying reasons behind jump bidding in takeover auctions. Through experimental tests, he will work to develop a refined theory of takeover auctions that will incorporate an understanding of shill bidding (where the seller plants bids to artificially inflate the price). He plans to conduct a pilot experimental study to test potential empirical implications of this model.