A note on the pricing of IPOs

Frederik Lundtofte ()

Economics Letters, 2010, vol. 106, issue 2, 105-107

Abstract: 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 we make a number of empirical predictions.

Keywords: IPO; underpricing; Monopoly; pricing; Fixed-price; auction; Risk; aversion (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:106:y:2010:i:2:p:105-107

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