Rationing of excessive demand on crowdinvesting-platforms

Arbeitspapier

On crowdinvesting-platforms, non-publicly traded companies can offer equity to private investors. Currently, platforms like Crowdcube.com in Great Britain or Seedmatch.de in Germany are using a mechanism for the allocation of available shares best described by the phrase first come, first served. This paper argues that this kind of allocation of shares or rationing of excessive demand is not optimal. It describes the characteristics that rationing of excessive demand has to imply to protect the interests of involved parties in an appropriate manner. A recommendation for a concrete practical implementation is offered as well.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Thünen-Series of Applied Economic Theory - Working Paper ; No. 126

Classification and Topics

• Classification: Wirtschaft ; Market Structure, Pricing, and Design: General ; Rationing; Licensing ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages ; Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill ; Market Structure, Firm Strategy, and Market Performance: General
• Subject: crowdinvesting ; market microstructure ; rationing ; equity ; underpricing ; excessive demand ; Kapitalanlage ; Social Web ; Rationierung ; Unternehmensgründung ; Eigenkapital ; Marktmikrostruktur

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Mäschle, Oliver
• Event: Veröffentlichung
• (who): Universität Rostock, Institut für Volkswirtschaftslehre
• (where): Rostock
• (when): 2012

Further information

• Handle: http://hdl.handle.net/10419/74657
• Last update: 10.03.2025, 11:42 AM CET