InTrade’-s John Delaney interviewed by Freakonomics:
Q. How does Intrade deal with insider trading?
A. Insider trading is one of the wicked problems, perhaps. Intrade is about providing the best predictive information. If insiders have information, then getting that information reflected in the market increases the quality of the information. I know this is not the conventional view concerning insider trading, and I am not arguing wholesale adoption or acceptance of insider trading. But we all know that, in the real world, insiders trade on inside information. We have even had markets on insider trading. Our view is to get the best information available into the market while we make sure there is some fair protection for outsiders.
I will have a third blog post on this John Delaney interview, later on, where I will make some comments.