Insider trading with different market structures
We study an extension of Jain and Mirman (1999) with two insiders under three different market structures: (i) Cournot competition among the insiders, (ii) Stackelberg game between the insiders and (iii) monopoly in the real market and Stackelberg in the financial market. We show how the equilibrium outcomes are affected by each of the market structure. Finally we perform a comparative statics analysis between the models.
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- Dow, J & Rahi, R, 1997.
"Informed Trading, Investment, and Welfare,"
Economics Working Papers
eco97/03, European University Institute.
- Wassim Daher & Leonard J. Mirman, 2004.
"Cournot duopoly and insider trading with two insiders,"
Cahiers de la Maison des Sciences Economiques
b04077, Université Panthéon-Sorbonne (Paris 1).
- Daher, Wassim & Mirman, Leonard J., 2006. "Cournot duopoly and insider trading with two insiders," The Quarterly Review of Economics and Finance, Elsevier, vol. 46(4), pages 530-551, September.
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- Ludovic Julien, 2011.
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Springer, vol. 103(2), pages 171-187, June.
- Creane, Anthony, 1994. "Experimentation with Heteroskedastic Noise," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 4(2), pages 275-86, March.
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- Tighe, Carla & Michener, Ron, 1994. "The Political Economy of Insider-Trading Laws," American Economic Review, American Economic Association, vol. 84(2), pages 164-68, May.
- Wang, Leonard F.S. & Wang, Ya-Chin & Ren, Shuang, 2009. "Stackelberg financial-leader in insider trading model," International Review of Economics & Finance, Elsevier, vol. 18(1), pages 123-131, January.
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