Information and Market Price Manipulation in Trade (2010-2012)
Abstract
This project in economic theory tries to understand how insider trading of financial assets affects the price of the assets and how we can model such situations using modern tools in economics. The aim is to provide a coherent microeconomic model of price manipulation and to study the properties of price systems in the presence of potential market price manipulation. The results that we may achieve will contribute to the theoretical understanding of market price manipulation and consequences in financial markets. We will also conduct applied economic policy analysis that relies implicitly on the foundations provided by game theory