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Erschienen in: Journal of Business Ethics 1/2016

27.03.2015

The Economics of Insider Trading: A Free Market Perspective

verfasst von: Taylor Smith, Walter E. Block

Erschienen in: Journal of Business Ethics | Ausgabe 1/2016

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Abstract

We deny that asymmetrical information is a market failure. In order to make this case, we subject to critical scrutiny the strongest case for this thesis: the view that laws prohibiting insider trading are viable, necessary, or compatible with the rule of law.

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Fußnoten
1
Ronald Coase has done yeoman work in bringing transactions costs to our attention, see Coase (1960). For a severe critique of overemphasizing the importance of these types of costs, see Rothbard (1990).
 
2
Other than, whichever maximizes profits with a greater likelihood, from the businessman’s point of view.
 
3
This is a quote from Michael Dooley, quoted in Bainbridge’s introduction to the insider trading volume of Manne’s collective works. Dooley (1999).
 
4
It is very difficult to determine who knew what when.
 
5
They also exist under socialism. See Mises (1922).
 
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Metadaten
Titel
The Economics of Insider Trading: A Free Market Perspective
verfasst von
Taylor Smith
Walter E. Block
Publikationsdatum
27.03.2015
Verlag
Springer Netherlands
Erschienen in
Journal of Business Ethics / Ausgabe 1/2016
Print ISSN: 0167-4544
Elektronische ISSN: 1573-0697
DOI
https://doi.org/10.1007/s10551-015-2621-5

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