and limited arbitrage. Our theory predicts that these two elements can generate a systematic price premium. We test the … behavior are consistent with the model. Finally, we quantify the welfare effects of arbitrage using a structural model. In our … setting, we show that full arbitrage is not necessarily welfare-enhancing in the presence of market power, reducing consumer …

arbitrage directly by forcing all transactions with subjects to be instant electronic bank transfers, thus making arbitrage easy …If experimental subjects arbitrage against market interest rates when making intertemporal allocations of cash, the … and salient. We also employ four decision frames to test alternative hypotheses. Our evidence contradicts arbitrage …

Although tax arbitrage is central to the literatures on tax capitalization, implicit taxes, and even capital structure …, there is little empirical evidence of the extent to which firms actually engage in tax arbitrage. This paper provides some … evidence on the topic by focusing on a simple and observable corporate arbitrage strategy in the market for municipal bonds. It …

Although tax arbitrage is central to the literatures on tax capitalization, implicit taxes, and even capital structure …, there is little empirical evidence of the extent to which firms actually engage in tax arbitrage. This paper provides some … evidence on the topic by focusing on a simple and observable corporate arbitrage strategy in the market for municipal bonds. It …

This paper identifies a limit to arbitrage that arises from the fact that a firm's fundamental value is endogenous to … the act of exploiting the arbitrage. Trading on private information reveals this information to managers and helps them …

Short selling, as compared to purchasing, faces greater risks and other potential impediments. This arbitrage asymmetry …

for foreign exchanges) data, it is found that risk-free arbitrage opportunities--free lunch--do occur in the foreign … pair and (b) triangular arbitrage relationship involving three currency pairs. The latter occur much more often than the … former. Such arbitrage opportunities tend to occur when the markets are active and volatile. Over the 12-year, tick …

We survey theoretical developments in the literature on the limits of arbitrage. This literature investigates how costs …