Insider trading with public and shared information

C-Tier
Journal: Economic Modeling
Year: 2011
Volume: 28
Issue: 4
Pages: 1756-1762

Authors (2)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We study the impact of public information and shared information on traders' trading behavior in the context of Kyle's (1985) speculative market. We suppose that there are four types of traders in our model: one insider, M outsiders, liquidity traders, and market makers. We explicitly describe the unique linear Nash equilibrium and find that public information harms the insider but benefits the outsiders and noise traders. Also, the market is more efficient because of the existence of public information.

Technical Details

RePEc Handle
repec:eee:ecmode:v:28:y:2011:i:4:p:1756-1762
Journal Field
General
Author Count
2
Added to Database
2026-01-29