Firm-commitment offerings in the U.S. are characterized by offer prices conditioned on information gleaned from indications of interest solicited from prospective investors. When such information can be used to persuade some investors to purchase shares at a price in excess of their initial...

Firms that go public produce information that influences the production decisions of their rivals as well as their own. If information-production costs are borne primarily by pioneering firms, market failures can occur in which both pioneers and followers remain private and make ill-informed...

Firm-commitment offerings in the U.S. are characterized by offer prices conditioned on information gleaned fromindications of interest solicited from prospective investors. When such information can be used to persuade some investors to purchase shares at a price in excess of their initial...

Examines the use of price stabilization and penalty bid provisions in primary equity markets. The model created in this analysis is based on the assumption that an underwriter represents the firm, the firm is issuing a fixed claim on its future cash flows, and there are two distinct pools of...