Backers and opponents argue over the pros and cons of legislation forbidding insider trading. At the same time, the lack of reliable empirical data caused by the currently prevailing legal systems inhibits an exhaustive scientific evaluation. We circumvent this problem by resorting to laboratory...

By means of a coin tossing experiment Cohn et al. (2014, Nature 516, 86-89, doi:10.1038tinature13977) study business culture in the banking industry and report that employees of a large, international bank behave honestly in a control condition while a significant proportion of them becomes...

We study price efficiency and trading behavior in laboratory limit order markets with asymmetrically informed traders. Markets differ in the number of insiders present and in the subset of traders who receive information about the number of insiders present. We observe that price efficiency (i)...