Manne, Henry

Abstract

This entry illustrates the very prominent role Henry Manne played in the Law and Economics tradition. Manne made seminal contributions in two key areas: the dynamics of corporate control, and the ethics and efficiency of insider trading. He showed that the market for corporate control is an efficient way of protecting shareholders’ interests and restraining abuse by the managers. From a normative standpoint, he emphasized that no specific regulation is required in these areas. The same normative conclusions also apply to insider trading, which is the quickest way of circulating information and avoiding bubbles. This entry concludes by summing up Manne’s contributions in education.