Toward a Theory of Asset Subscription
This paper develops an understanding toward a theory of asset subscription. When a firm needs to raise cash from an asset that is too large or too risky for a single individual or financial institution so that an auction method is not applicable, the firm may use a subscription scheme. In this paper, we discuss a Nash subscription (NS) scheme and a sequential subscription (SS) scheme. We characterize the optimal strategy when the value of the asset is known. The comparison between a NS and a SS is provided. The difference between an auction scheme and a subscription scheme is discussed.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Yeon-Koo Che & Ian Gale, 1998. "Standard Auctions with Financially Constrained Bidders," Review of Economic Studies, Oxford University Press, vol. 65(1), pages 1-21.
- Jianbo Zhang & Zhentang Zhang, 1999. "Asymptotic Efficiency in Stackelberg Markets with Incomplete Information," CIG Working Papers FS IV 99-07, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
- Boyer, Marcel & Moreaux, Michel, 1986. "Perfect competition as the limit of a hierarchical market game," Economics Letters, Elsevier, vol. 22(2-3), pages 115-118.
- Anderson, Simon P. & Engers, Maxim, 1992. "Stackelberg versus Cournot oligopoly equilibrium," International Journal of Industrial Organization, Elsevier, vol. 10(1), pages 127-135, March.
When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpfi:0303001. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA)
If references are entirely missing, you can add them using this form.