Insider trading in a two-tier real market structure model

► We study the effects of insider trading in a two-tier real market structure model. ► The two-tier structure affects the stock price and the stock pricing rule. ► The two-tier model restricts the influence of the insider on the final good market. ► We then add a second insider and study its effects on the benchmark model. ► Competition in the financial market affects both the real and financial variables.