Ethics question: Share Allocation

Say you are a broker allocating shares in an oversubscribed IPO, should you:

  1. allocate the shares based on the number of person ordering
  2. allocate the shares based on the order size

And what is your rationale?

My take so far:

  • Individuals can take advantage by inflating their order size if the allocation is based on order size.
  • Individuals can place many orders on behalf of many clients account to take advantage of the even allocation between number of person ordering.