How the inventor could use the information

Reference no: EM131908251

Question: 1. Suppose that the inventor of a weather-forecasting technique determines that the weather during the growing season will be perfect, causing a bumper harvest. Explain how the inventor could use this information to make profitable investments.

2. The directors of a corporation are often the first people to know about facts that affect its stock price. American law forbids directors and other "insiders" from using "inside information" to speculate on the value of the company's stocks. Use the theory of first appropriation and the economics of information to make arguments for and against the efficiency of this prohibition.

Reference no: EM131908251

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