Buying Merger Votes? It's Not What You Think

Law360, New York (July 24, 2013, 3:48 PM EDT) -- Vote-buying is usually synonymous with corruption. But new research from two legal and economic scholars at the University of Chicago says it could actually lead to fairer outcomes for minority shareholders in mergers and proxy fights.

Eric Posner, Chicago law professor and son of Seventh Circuit Judge Richard Posner, and Glen Weyl, a professor at the university’s business school, are suggesting something called quadratic vote-buying. It would do away with the “one-share, one-vote” standard; in fact, it would do away entirely with the idea that shares...
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