Research ArticleOpen accessPhrase in the titleAn Economic Model of Insider Trading with an Informed Third PartyNasser G. ElkanjThe fact that an insider gains only at the expense of an outsider, manipulative insider trading precipitates a conflict of interests. We model this conflict in an extended principal-agent framework to demonstrate that the endogenous demand for reliable information would limit the volume and persistence of manipulative insider trading. An important dimension of such an insider trading is that an … …Journal of Social Sciences, Vol. 1, Issue 3 · 30 Sep 2005 · 6,807 accessesView PDFCite