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News Tip: Facebook's IPO Raises Ethical Questions
Facebook's initial sale of stock on Friday would value the social media titan at more than $100 billion.
Professor of psychology and behavioral economics, The Fuqua School of Business, Duke University
Check out Ariely's blog post for further analysis:
Ariely's research is dedicated to the forces that influence behavior, often leading consumers to act irrationally. He is the author of "Predictably Irrational" and "The Upside of Irrationality."
"The leaders of Facebook probably believe in their own definition of a 'successful' IPO, which in their terms is one where the stock is priced at $40 and quickly trades up to $50. In the case of Facebook, this process simply redistributes $4 billion from Facebook to the banks and the large fund managers.
"For Mark Zuckerberg and his team, I have to wonder whether the emotional value of a first day share price 'pop' is worth $4 billion."