Outsider trading as an incentive device

Bruce Kobayashi and my paper, Outsider Trading as an Incentive Device, is now up on SSRN. We discuss trading that lies beyond the Supreme Court's misappropriation theory.

One topic we cover is the dumping and suing scenario Moin Yahya have been debating this week on PointofLaw Featured Discussion. But there's more! Tune in to learn our take on

• the Perry-Icahn battle in the Mylan/King takeover, first discussed here
• the "dump-and-boycott" anti-Coke hedge fund, first discussed here
• using securities markets to encourage whistle-blowing
• trading in competitors as a way to encourage market entry and
• trading in a contracting partner to, in effect, share the surplus.

We tie all these seemingly disparate topics together by showing how markets can be used to capitalize, and therefore encourage the production, of information and monitoring. In light of this theory, we criticize the broad proposal to regulate outsider trading by Ian Ayres & Stephen Choi, Internalizing Outsider Trading, 101 MICH. L. REV. 313 (2002).

So get it while it's hot!