Atlantis Press Paper Details: Using Fuzzy Game Theory on IPO's Pricing Behavior

The purpose of this research is to explore the IPO pricing behavior in an underwriting system by applying the fuzzy game theory. Results of this study are: (1) The application of the fuzzy game theory is more consistent with the uncertainty relationship of human interference between independent and dependent variables in practice with profit return function as a potential function. Rewards for underwriters can be judged according to the principle of experience, which copes with actual situations more properly. (2) Differences of satisfaction exist between underwriters and issuing companies for IPO pricing in the underwriting system. Profit or satisfaction exchange can be conducted appropriately during the process of negotiating offering prices. (3) The comparison of profit changes and satisfaction sensitivity between underwriters and issuing companies can be served as a reference of exchange and increase in satisfaction for underwriters and issuing companies

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title:		Using Fuzzy Game Theory on IPO's Pricing Behavior
publication:		JCIS-2006 Proceedings
part of series:		Advances in Intelligent Systems Research
ISBN:		978-90-78677-01-7
ISSN:		1951-6851
DOI:		doi:10.2991/jcis.2006.177 (how to use a DOI)
author(s):		Kuang-Hua Hsu, Jian-Fa Li, Hon-Jenq Fan
corresponding author:		Kuang-Hua Hsu
publication date:		October 2006
keywords:		Pricing behavior; Underwriting system; IPO; Fuzzy game theory
abstract:		The purpose of this research is to explore the IPO pricing behavior in an underwriting system by applying the fuzzy game theory. Results of this study are: (1) The application of the fuzzy game theory is more consistent with the uncertainty relationship of human interference between independent and dependent variables in practice with profit return function as a potential function. Rewards for underwriters can be judged according to the principle of experience, which copes with actual situations more properly. (2) Differences of satisfaction exist between underwriters and issuing companies for IPO pricing in the underwriting system. Profit or satisfaction exchange can be conducted appropriately during the process of negotiating offering prices. (3) The comparison of profit changes and satisfaction sensitivity between underwriters and issuing companies can be served as a reference of exchange and increase in satisfaction for underwriters and issuing companies
copyright:		© Atlantis Press. This article is distributed under the terms of the Creative Commons Attribution License, which permits non-commercial use, distribution and reproduction in any medium, provided the original work is properly cited.
full text:		JCIS06-CIEF-42.pdf (1376 K)