"The law of one price doesn't apply - at least for cannabis. According to this survey (pdf), cannabis resin costs twice as much in Manchester as in Liverpool. Which raises the question: why isn't there arbitrage? Why don't traders buy blow from Scousers, drive 35 miles, and sell it to Mancs?
I reckon there are four possibilities:"
Wednesday, September 13, 2006
The Law of Once Price
Stumbling and Mumbling: Limits of arbitrage:
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