Insider Trading With Product Differentiation
| Autor: | Fida Karam, Asiye Aydilek, Harun Aydilek, Wassim Daher |
|---|---|
| Rok vydání: | 2012 |
| Předmět: |
Economics and Econometrics
Market microstructure Product differentiation Cournot competition Kyle model. Kyle model Insider trading product differentiation correlated signals modèle de Kyle. signaux corrélés Initié différentiation des produits General Business Management and Accounting Market maker Competition (economics) Microeconomics Market structure Order (exchange) Stackelberg competition Economics Insider trading Duopoly |
| Popis: | In this paper, we analyze the effect of Cournot competition with differentiated products on the real and financial decisions of a publicly-owned firm, with three different structures in the financial market : monopoly, duopoly and Stackelberg. We shows that the degree of product differentiation does not affect the results found in the literature on insider trading, concerning the effect of the financial market structure on firms' outputs, the revelation of information and the insiders' orders. Besides, firms' output, the amount of information revealed in the stock price, the insiders' trading orders and the owners' profits are independent of the degree of product differentiation. The real market structure through the degree of product differentiation is found to determine the level of the compensation scheme earned by the manager, the market makers' response to the total order flow signal as well as the managers' profits. Ce papier analyse l'effet de la concurrence à la Cournot avec différentiation de produits, sur les décisions financières et réelles d'une entreprise publique, sous trois structures du marché financier : monopole, duopole et concurrence à la Stackelberg. Les résultats montrent que l'effet de la structure du marché financier sur les quantités produites par les firmes, la révélation d'information, les actions des initiés ainsi que les profits des propriétaires de la firme, est invariant avec différentiation de produits. En revanche, cette structure a un effet direct sur la compensation du manager, ses profits et sur un des coefficients du prix du marché financier. |
| Databáze: | OpenAIRE |
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