Models - IPO-Underpricing

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    Models

    Basics
    Equilibrium-Based Models
    Click on one of the theses below to see detailed explanations


    The Winner's Curse
    Rock's equilibrium model

    Ex-ante Uncertainty
    The model of Beatty/Ritter

    Underwriters Reputation
    The model of Carter/Manaster

    Signalling
    The models of Grinblatt/Hwang, Allen/Faulhaber, Welch and Chemmanur

    Advanced Information of the Underwriters
    The modell of Baron

    The Venture-Capital Industry
    The model of Booth/Smith, Megginson/Weiss or Barry et al.

    The Market Reputation Thesis
    The model of Hunger

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    Ad-hoc Hypothesises
    Click on of the thesises below to see detailed explanations


    Legal Liability
    Underpricing as an insurcance against legal liability (the model of Tinic)

    Monopsony Power of the Underwriters
    The thesises of Logue, Reilly, Ritter oder Chalk/Peavy

    Institutional Allocation
    The thesises of Hanley/Wilhelm, Aggarwal et al. or Ljungqvist

    Underwriters Price Support
    The thesis of Ruud

    Prospect Theory
    The thesis of Loughran/Ritter

    Speculative Bubbles & Irrational Behaviour

    Hot-Issue Markets
    The thesis of Ritter
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