January 28, 2004
Ian Ayres and Barry Nalebuff ask an interesting question: "Why don't firms use their inside information to sell rivals short when they have information that won't be good news for their rivals?" (Forbes magazine, free registration required.)
Which prompts a question of my own: under what legal or economic theory should insider trading be illegal for individuals but legal for firms (as Ayres and Nalebuff declare it is)?