Evolutionary Psychology, Moral Intuition and the Structure of Insider Trading Law
Steven R. McNamara
American University of Beirut
March 7, 2014
American insider trading law is currently in an expansionist phase both in the substance of its legal doctrines under Rule 10b-5 and the resources devoted by federal officials to insider trading prosecutions. While these developments pose certain risks, they also respond to deep-seated moral intuitions human beings have concerning social interaction, including investments in the corporate enterprise. Evolutionary psychology offers a persuasive account of the appeal strong insider trading law holds, and also a theoretical justification for recent trends. An evolutionary psychological account of insider trading law also offers the promise of providing a theoretical basis for the observed correlation of insider trading enforcement with various measures of the health of financial markets, as well as a unified jurisprudence of insider trading law.
Number of Pages in PDF File: 59
Keywords: Insider trading, evolutionary psychology, law and economics
JEL Classification: C71, D64, G18, K22, K42working papers series
Date posted: April 3, 2014
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