@techreport{Oehler2000Insiders,
abstract = {This paper reports the results of 13 experimental asset markets with 195 subjects that explore
the effects of insider behavior on the price formation process and market liquidity. The
experimental call markets use a more realistic design than related studies. We introduce
infinitely-lived assets instead of periodical liquidation (so-called ?reset? markets) and provide
full market transparency to the investors with an open orderbook.
Our main findings are that insider trading does not improve informational efficiency at all but
depresses market liquidity of the assets significantly.
At a first glance, the observed spread widening as an impact of insider behavior leads to the
conclusion that our call markets react ?as if? all subjects behave rationally like dealers in a
market making environment. At a second glance, a first look into the individual data shows
that only a smaller group of investors act as ?endogenous? market makers in the call market
regime.},
author = {Andreas Oehler and Klaus Heilmann and Volker L\"{a}ger},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {G14; D44; G12; 330; Market Microstructure; Experimental Asset Markets; Insider Behavior; Market Efficiency; Call Markets; Behavioral Finance; B\"{o}rsenkurs; B\"{o}rsenumsatz; Informationseffizienz; Anlageverhalten; Insiderhandel; B\"{o}rsenspiel},
language = {eng},
number = {11},
title = {Do Insiders Contribute to Market Efficiency? : Informational Efficiency and Liquidity of Experimental Call Markets with and without Insiders},
type = {Bank- und Finanzwirtschaftliche Forschung: Diskussionsbeitr\"{a}ge des Lehrstuhls f\"{u}r Betriebswirtschaftslehre, insbesondere Finanzwirtschaft, Universit\"{a}t Bamberg},
url = {http://hdl.handle.net/10419/22490},
year = {2000}
}
