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Fig. 2 | Financial Innovation

Fig. 2

From: Heterogeneous expectations, IPO Underpricing and issuing mechanism

Fig. 2

Relation between IPO underpricing and V 1, V 2 under different issuing mechanism. We use the data V 1 [8, 16], V 2 [8, 16], n = 10, k = 0.65 ρ = 2, σ 1 2 = 1, σ 2 2 = 2.5, discuss the relation between IPO underpricing and investors’ heterogeneous expectations, and use Matlab to plot the relation between IPO underpricing and V 1, V 2. According to the model (3) and model (6) in the paper. UP1 is IPO underpricing under the fixed-price mechanism and UP2 is IPO underpricing under bookbuilding

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