Financial executives of firms engaged in forward contracting have raised concerns that mandated disclosure of those contracts would reveal proprietary information to rival firms. This paper considers the basis for those concerns in the framework of a duopoly in which one privately informed...

I model the investors' costly information acquisition behaviours with strategic communication of asymmetric information in financial markets. I extend the dynamic insider trading model based on Kyle(Econometrica 53 (1985) 1315) to allow for costly, unobservable information acquisition, assuming...