I study how sequential entry into an arbitrage affects the liquidity of underlying assets and the speed of arbitrage …, incumbent arbitrageurs trade slowly to limit their price impact. As a result, the arbitrage opportunity does not vanish … barriers to entry. If entry does occur in equilibrium, market depth and the speed of arbitrage increase ahead of entry, while …

traders arbitrage, thus restricting producers' market power. Using detailed individual data, I examine physical and financial …

, even though it appears that the open-end form can be a serious impediment to arbitrage. I argue that the equilibrium degree …-suited to undertaking certain types of arbitrage trades. One implication of the analysis is that, even absent short …