Two Insider Trading Game Model With Incomplete Information

In the financial assets transaction market, there is some traders using asset value information in asset transactions, this problem is regarded as the problem of insider trading. Since Kyle proposed in 1985 about the insider transaction model, caused the high attention and enthusiasm of many experts, scholars at home and abroad about this aspect, and obtained many achievements, at present, one of the hot research on the trading behavior of financial assets is the problem of insider trading.In reference many domestic research literatures about the internal transaction problems, the main research work of this thesis are as follows:1. Discussed the research background and significance of the problem of insider trading, and summarized and reviewed the literature on internal trade research at home and abroad.2. The related concepts about the theory of the problem of insider trading and classical models were introduced, analysised and summaried.3. In the Kyle (1985) model (the classical model of internal transactions of linear equilibrium correction)based on the assumption of linear equilibrium correction,and the internal traders do not know the value of the assets, according to the theory of Nash equilibrium, affine theory and random theory, discussed respectively, and established three new equilibrium models of trading dynamic game two (model 1:risk averse equilibrium model; model 2:risk loving equilibrium model; model 3:risk neutral equilibrium model), and got the Kobo Nash equilibrium of the 3 equilibrium of the model.4. Two trading on the market equilibrium with incomplete information, analysis the volatility (σε2) of noise (ε) in the value of the assets which are not complete information(v+ε), income surplus information and risk aversion inside trader on market depth, insider trading and market transactions, assets exchange equilibrium price influence, and draws the conclusion:the smaller the degree of interference noise on the market (σε2 smaller), the more conducive to the internal traders (with incomplete information) income; insider trading more active; trading equilibrium price contains more information of asset value.Finally, the contents of this paper are summarized, and the problem of insider trading in the future research work is prospected.