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Implications of Different Trading Mechanisms on insider trading, Efficiency of Prices and Welfare

Obiettivo



Research objectives and content:

The project will investigate the implications of insider trading and welfare under different trading mechanisms. The results should provide a better understanding of how insider trading affects efficiency of prices, the investment decisions which entrepreneurs have to take and overall welfare. In particular, the question is addressed whether trading by agents with superior information is socially beneficial and how regulators can design an optimal trading rule. The results of my research work will be driven by two forces: on the one side, more insider trading will increase price efficiency and therefore, entrepreneurs can make better investment decisions. On the other side, more insider trading will worsen the adverse selection problem for traders trying to hedge their endowment risks. The appropriate welfare measure is the expected utility of traders and the balance of the two forces will determine the desirability of insider trading. A comparison with the continuous market will be the final result of the project.

Training content (objective, benefit and expected impact)

GREMAQ at Toulouse university is well known for its expertise in financial markets, industrial organisation and regulation. Interaction with my supervisor Rochet but also with Biais, Tirole and Laffont will guarantee a successful project.

Links with industry / industrial relevance (22)

Campo scientifico (EuroSciVoc)

Programma(i)

Argomento(i)

Invito a presentare proposte

Dati non disponibili

Meccanismo di finanziamento

RGI - Research grants (individual fellowships)

Coordinatore

UNIVERSITE DE TOULOUSE 1, SCIENCES SOCIALES
Contributo UE
Nessun dato
Indirizzo
AllTe de Brienne 21 Manufacture des Tabacs Batimen
3100 TOULOUSE
Francia
Costo totale
Nessun dato