Use of insider information in the exchange game

DOI: 10.33917/mic-4.93.2020.90-95

Information costs money, especially if its disclosure can greatly affect the financial condition of an economic entity. Possession of this information makes some people think about its protection and temporary preservation, while others – about how to get it. The carriers of this information, referred to as insiders, may themselves use the knowledge in their own favor, or in favor of third parties. Involvement of unskilled investors in trading often serves as a veil of mercenary intentions.

This article gives general approaches to understanding the significance of insider information during stock market games. Clarification of the nature and mechanisms of the misuse of insider information should help to penalize this phenomenon.