| 来源类型 | FEEM working papers "Note di lavoro" series |
| 规范类型 | 论文 |
| Rationing in IPOs | |
| Christine A. Parlour; Uday Rajan | |
| 发表日期 | 2003 |
| 出处 | Economy and Society |
| 出版年 | 2003 |
| 语种 | 英语 |
| 摘要 | We provide a model of bookbuilding in IPOs, in which the issuer can choose to ration shares. We consider two allocation rules. Under share dispersion, before informed investors submit their bids, they know that, in the aggregate, winning bidders will receive only a fraction of their demand. We demonstrate that this mitigates the winner's curse, that is, the incentive of bidders to shade their bids. It leads to more aggressive bidding, to the extent that rationing can be revenue-enhancing. In a parametric example, we characterize bid and revenue functions, and the optimal degree of rationing. We show that, when investors' information is diffuse, maximal rationing is optimal. Conversely, when their information is concentrated, the seller should not ration shares. We determine the optimal degree of rationing in a class of credible mechanisms. Our model reconciles the documented anomaly that higher bidders in IPOs do not necessarily receive higher allocations. |
| 特色分类 | D44,G2 |
| URL | https://www.feem.it/en/publications/feem-working-papers-note-di-lavoro-series/rationing-in-ipos/ |
| 来源智库 | Fondazione Eni Enrico Mattei (Italy) |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/116854 |
| 推荐引用方式 GB/T 7714 | Christine A. Parlour,Uday Rajan. Rationing in IPOs. 2003. |
| 条目包含的文件 | 条目无相关文件。 | |||||
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