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A Note on the Pricing of IPOs

På svenska

Author

  • Frederik Lundtofte

Summary, in English

This paper studies the pricing of IPOs in a tractable model in which an investment bank faces some investors with superior information. We show how this can lead to underpricing and, based on our model, we make a number of empirical predictions.

Publishing year

2010

Language

English

Pages

105-107

Publication/Series

Economics Letters

Volume

106

Issue

2

Document type

Journal article (letter)

Publisher

Elsevier

Topic

  • Economics

Keywords

  • Risk aversion
  • Monopoly pricing
  • IPO underpricing
  • Fixed-price auction

Status

Published

ISBN/ISSN/Other

  • ISSN: 0165-1765