Two rival PE firms are interested in finding the same two start- ups. Each would prefer not
Question:
What are the reservation prices of managers at the two firms? What will bidding look like?
Transcribed Image Text:
PE Firm A Invest Start-up 1 Invest Start-up 2 Invest 1 10, 10 60, 40 PE Firm B Invest 2 25, 55 20, 20
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Related Book For
Managerial Economics Theory Applications and Cases
ISBN: 978-0393912777
8th edition
Authors: Bruce Allen, Keith Weigelt, Neil A. Doherty, Edwin Mansfield
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