On Pricing Anomalies and the Limits of Arbitrage [Archive.org URL]

Textbooks say that even minuscule differences in the price of identical goods in two places should be short-lived. Eagle-eyed arbitrage traders will swoop and make some easy money. But anomalies do exist, and they often persist for far longer than theories predict. As a result, economists are revisiting theories about arbitrage – the process which should equalize prices if they get out of line

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