How much should one offer for a company with uncertain value? This game demonstrates that to be successful, one has to recognize that the expected value of the firm is irrelevant. All that should be of concern is the expected value of the firm if you win, which depends on your bid. This applet lets the student try different bidding strategies. They select the range of the firm's possible values (0 to 1000 in this example) and the extent of the synergies (50% in this example). Then, after entering a bid, the applet will simulate twenty firm values, and calculate average profits.
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