A Note on the Pricing of IPOs
Author
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.
Department/s
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