Underpricing von IPOs

The central issue of this book is the question how to explain the underpricing of initial public offerings adequately. A detailed analysis of the current state of economic research reveals that formal equilibrium models based on information asymmetries are the dominant means to interpret this phenomenon. However, there is no actual concept which can be used as a general approach. Particularly, equilibrium models based on information asymmetries are limited in their explanatory power by the principles of their underlying neoclassical paradigm.
A method to expand the existing theory of underpricing lies in complementing the present model theoretical view with a process oriented view. The present book enlarges the established concepts of underpricing by adding a causal process perspective according to the ideas of Austrian Economics. All in all, the complementary joining of model and causal process theory allows a more realistic insight into underpricing.