I just want to add this bit of Finance Theory / Econ 101 to the mix, it's interesting: Markets function better (or really, they function at all, it's the defin

I just want to add this bit of Finance Theory / Econ 101 to the mix, it's interesting: Markets function better (or really, they function at all, it's the definition) when prices are what they should be. Trading on insider information moves prices in the direction that they should be moving. The flaw in the pricing is due to the secret that's being kept, and the secret is being kept to protect insiders, not the public. So, as a counter example to "the tragedy of the commons", trading on inside information is an example of positive externalities surrounding trades with negative "internalities".