Insider Trading: Supermarket Lines, the Stock Market and Chance

Before getting to the topical issue, let me start with a simple puzzle. Which of the following two situations would you prefer to be in? In the first one, you're given a fair coin to flip and are told that you will receive $1,000 if it lands heads and lose $1,000 if it lands tails. In the second, you're given a very biased coin to flip and must decide whether to bet on heads or tails. If it lands the way you predict, you win $1,000 and, if not, you lose $1,000. Although most people prefer...Full Story