When chasing the offender hurts the victim: The case of insider legislation
通过实验室市场实验，发现禁止内幕交易的立法会降低市场流动性、信息效率和无信息交易者的收益，对市场产生显著负面影响。
Backers and opponents argue over the pros and cons of legislation forbidding trading by informed insiders. Yet a lack of reliable empirical data about the effects of such legislation inhibits a conclusive scientific evaluation. We overcome this problem by resorting to laboratory markets and find that insider legislation has significant negative effects on multiple market dimensions: under insider legislation, (1) markets are less liquid, (2) markets are less informationally efficient, and (3) uninformed traders׳ earnings (before redistribution of illicit insider gains) are lower.