A game theory model of regulatory response to insider trading

We develop a model which can help in explaining the evolving regulatory regime around insider trading. We form a simple sequential game-theoretical model of insider trading transactions and, utilizing Monte Carlo simulation to determine equilibrium, we show that costly investigations and low penalti...

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Bibliographic Details
Main Authors: Smales, Lee, Thul, M.
Format: Journal Article
Published: Routledge 2016
Online Access:http://hdl.handle.net/20.500.11937/31859