Market frictions such as transactions costs, funding constraints and short selling constraints limit arbitrage, but …, we examine the effect of these frictions on arbitrage efficiency of the two markets. We find evidence of significant … cross-sectional variation in the size and asymmetricity of no-arbitrage bands. To the extent that market frictions affect …

We develop a model of financially constrained arbitrage, and use it to study the dynamics of arbitrage capital … the dynamics of arbitrage activity are self-correcting: following a shock that depletes arbitrage capital, profitability … trades, although arbitrageurs cut their positions in these trades the least. When arbitrage capital is more mobile across …

uncertainty in standard form commercial contracts creates an opportunity for “contractual arbitrage”: parties may argue, ex post … that the scope for contractual arbitrage is a direct function of the techniques that courts use to resolve ambiguities in … of contractual arbitrage in standard form commercial contracting when courts give indeterminate terms idiosyncratic …

variable in explaining stock returns; 3) Apply APT theory and establish that macro economic factors affect the returns of IT …

much is an investor willing to pay for learning some inside information that allows to achieve arbitrage? If such a value … exists, we call it the value of informational arbitrage. In particular, we are interested in the case where the inside … information yields arbitrage opportunities but not unbounded profits with bounded risk. In the spirit of Amendinger et al. (2003 …

We measure the incidence of latency arbitrage for cross-listed stocks around the time of an exogenous shock that made … markets. We document a sharp decline in the incidence of cross-market arbitrage opportunities across the Nordic markets for … cross-listed stocks from 2009 to 2010 and later. Over the five year sample period 77% of the observed cross-market arbitrage …