EconPapers    
Economics at your fingertips  
 

Catch me if you can. Can human observers identify insiders in asset markets?

Thomas Stöckl and Stefan Palan ()

Journal of Economic Psychology, 2018, vol. 67, issue C, 1-17

Abstract: Securities regulators around the globe face the challenge of identifying trades based on privileged information. We study human observers’ ability to identify informed traders and investigate which trading patterns are indicative of informed trading using experimental asset markets. We furthermore test how the behavioral response of informed traders to the threat of detection and punishment impacts observers’ detection abilities. We find that market trading data carries information which correlates with informed trading activity. Observers partly succeed in recognizing and using this information to identify informed traders.

Keywords: Insider regulation; Insider detection; Asset market; Experiment (search for similar items in EconPapers)
JEL-codes: C92 D82 G12 G14 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0167487017307201
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Catch me if you can. Can human observers identify insiders in asset markets? (2018) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:joepsy:v:67:y:2018:i:c:p:1-17

Access Statistics for this article

Journal of Economic Psychology is currently edited by G. Antonides and D. Read

More articles in Journal of Economic Psychology from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2019-10-19
Handle: RePEc:eee:joepsy:v:67:y:2018:i:c:p:1-17