Add to ORKGAn arbitrage is a serious inefficiency of a financial market, and it is traditionally considered to completely disrupt a price system and to allow agents for growing unlimitedly rich. By means of a simple example, this paper points out that this is only true when dealing with positively homogeneous price systems; indeed, in more general financial market models (taking into consideration, e.g., liquidity limitations), arbitrages might just yield a light effect without overall critical consequences (allowing, in particular, to realise just a limited, and possibly very small, gain)
The theory of asset pricing takes its roots in the Arrow-Debreu model (see,for instance, Debreu 1959...
This paper gives two measures of the degree of fulfillment of the Law of One Price. These measures ...
We construct and study market models admitting optimal arbitrage. We say that a model admits optimal...
An arbitrage is a serious inefficiency of a financial market, and it is traditionally considered to...
Abstract There is an extensive literature claiming that it is often difficult to make use of arbitra...
There is an extensive literature claiming that it is often difficult to make use of arbitrage opport...
There is an extensive literature claiming that it is often difficult to make use of arbitrage opport...
There is an extensive literature claiming that it is often difficult to make use of arbitrage opport...
∗We are grateful to seminar participants at McGill University and the University of Wisconsin-Madiso...
We survey theoretical developments in the literature on the limits of arbitrage. This literature inv...
In the framework of economics models with unbounded short sales a number of different conditions lim...
Abstract This paper develops a model in which arbitrageurs are collectively unconstrained, but may s...
Despite being a mainstay of modern economic theory, the simple concept of arbitrage is sorely misuse...
This paper develops a model in which arbitrageurs are collectively unconstrained, but may still pref...
At arbitrary prices of commodities and assets, fix-price equilibria exist under weak assumptions: en...
The theory of asset pricing takes its roots in the Arrow-Debreu model (see,for instance, Debreu 1959...
This paper gives two measures of the degree of fulfillment of the Law of One Price. These measures ...
We construct and study market models admitting optimal arbitrage. We say that a model admits optimal...
An arbitrage is a serious inefficiency of a financial market, and it is traditionally considered to...
Abstract There is an extensive literature claiming that it is often difficult to make use of arbitra...
There is an extensive literature claiming that it is often difficult to make use of arbitrage opport...
There is an extensive literature claiming that it is often difficult to make use of arbitrage opport...
There is an extensive literature claiming that it is often difficult to make use of arbitrage opport...
∗We are grateful to seminar participants at McGill University and the University of Wisconsin-Madiso...
We survey theoretical developments in the literature on the limits of arbitrage. This literature inv...
In the framework of economics models with unbounded short sales a number of different conditions lim...
Abstract This paper develops a model in which arbitrageurs are collectively unconstrained, but may s...
Despite being a mainstay of modern economic theory, the simple concept of arbitrage is sorely misuse...
This paper develops a model in which arbitrageurs are collectively unconstrained, but may still pref...
At arbitrary prices of commodities and assets, fix-price equilibria exist under weak assumptions: en...
The theory of asset pricing takes its roots in the Arrow-Debreu model (see,for instance, Debreu 1959...
This paper gives two measures of the degree of fulfillment of the Law of One Price. These measures ...
We construct and study market models admitting optimal arbitrage. We say that a model admits optimal...