However, underpricing an IPO results in lost potential capital for the issuer. One potential method for determining underpricing is through the use of IPO underpricing algorithms. "Executive Stock Options and IPO Underpricing", "Journal of Financial Economics", 85, 39-65. Besides, underpricing is also affected by the firm idiosyncratic factors such as its business model. Investors state that underpricing signals high interest to the market which increases the demand. There is an overall underpricing of formal water and sanitation services in Sub-Saharan Africa. After 1900 it did not try to force competitors out of business by underpricing them.