Among the most puzzling observations for the euro money market are the bid shading in the weekly refinancing operations and the development of interest rate spreads. To explain these observations, we considera standard divisible-good auction à la Klemperer and Meyer (1989) with uniform or...

Despite their theoretical efficiency in selling shares to the public, auctions are not thepreferred mechanisms of issuers in Initial Public Offerings (IPOs). Chemmanur and Liu(2006) [WP] and Sherman (2005) [JFE 78, 615-649] provide a rational explanation for this“IPO auction puzzle”. They...