Watch the video “The Winner’s Curse” (Links to an external site.) and answer the following questions. You are encouraged to comment on others’ answers.
- What is the winner’s curse? How does it apply in the context of mergers and acquisition? (5 points)
- What factors contribute to the winner’s curse? (5 points)
- How does a firm reduce the risk of the winner’s curse when using the merger and acquisition strategy? (5 points)