arbitrage or financial innovation arise from mispricings caused by the presence of confused investors or other distortions, such … market-making is harmful. Rather than arbitrage facilitating the flow of risk to those who can most efficiently bear it, this … harmful arbitrage allocates risk to those who least understand it. The beneficial effects of efficient pricing on real …

We investigate the arbitrage-free property of stock price models where the local martingale component is based on an … models in the literature admit arbitrage opportunities. We investigate in detail the features of the existing model … specifications which create these arbitrage opportunities, and consequently construct a modification that is arbitrage free …

theory research world. These models are extensively tested for developed markets. Focusing on arbitrage pricing theory, this … paper tries to analyze its effect in the Indian stock market. The advantages of arbitrage pricing theory (APT) over the …

Real-world arbitrage often involves a limited number of large financial intermediaries (e.g. dealers, hedge funds) with … price impact. I study a multi-period model of imperfectly competitive arbitrage, in which supply shocks generate price di …-varying. The model also off ers new testable predictions, in particular that the market structure is a driver of arbitrage speed …

The economic models of bargaining and tort law have not been integrated into a coherent theory that reflects the … empirical world. This Article models the interaction of settlement dynamics and the theory of negligence. It shows that tort … spread between the parties' respective costs of resolution presents an arbitrage opportunity in which the bargaining process …

and private parties compete over the opportunity to engage in bias arbitrage. Bias arbitrage is the extraction of private … same risks. Politicians arbitrage these discrepancies by enacting laws that address the misperceived risk and contain a … the media, who can engage in bias arbitrage using extra-legal means. This article analyses methods in which parties engage …

Focusing on capital asset returns governed by a factor structure, the Arbitrage Pricing Theory (APT) is a one …-period model, in which preclusion of arbitrage over static portfolios of these assets leads to a linear relation between the … expected return and its covariance with the factors. The APT, however, does not preclude arbitrage over dynamic portfolios …

derive this model, I generalize Ross arbitrage pricing theory to flows. I also obtain several useful theoretical results …I generalize the textbook arbitrage-pricing framework to characterize how uninformative flows generate price impacts …, including flow-based stochastic discount factor, flow-based Hansen-Jagannathan bound, portfolio flow theory, and formalization …