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Competitive fairness and the concept of a fair price under Delaware law on M&A
Author(s) -
Yano Makoto
Publication year - 2008
Publication title -
international journal of economic theory
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.351
H-Index - 11
eISSN - 1742-7363
pISSN - 1742-7355
DOI - 10.1111/j.1742-7363.2008.00082.x
Subject(s) - outcome (game theory) , economics , technicolor , microeconomics , law and economics , fair share , law , political science , gauge boson , particle physics , gauge theory , physics
The entire fairness test that the Delaware Court of Chancery developed in the famous Technicolor case defines what constitutes fair dealings and fair pricing. This study introduces a new concept of fairness, called competitive fairness, that covers entire fairness. It develops what I call open market bargaining theory and demonstrates that the Technicolor outcome is an open market bargaining equilibrium, which can be thought as competitively fair under the nondiscrimination rule of markets.