Arbitrage in Another Market: Diapers

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Lansky
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Lansky

Arbitrage in Another Market: Diapers
« on: February 07, 2013, 10:21:23 PM »

The Great Norway Diaper Racket Is the Best Arbitrage Ever
http://www.theatlantic.com/business/archive/2013/02/the-great-norway-diaper-racket-is-the-best-arbitrage-ever/272802/

Last Paragraph: "And then there's the biggest risk of all. Norwegians retailers could, ahem, spoil the whole scheme by increasing diaper prices. That's the way the price-system is supposed to respond anytime there's a shortage of something, and it's how it eventually will respond, even if Norwegian supermarkets cling to their "get parents in the door" strategy for now. In other words, arbitrageurs will ultimately succeed in arbing away the price difference."

Cramming a van with 9 grand in pampers... what's next chartering a Baltic fishing boat or yacht to make the run up to Oslo and then back down to Gdansk or Klaipeda? 
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In Arbitrage, Percentages are Vanity and Turnover is Sanity.
ArberPro
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Re: Arbitrage in Another Market: Diapers
« Reply #1 on: February 09, 2013, 04:27:51 PM »

I loved the part "There's no such thing as a free lunch in economics, except when there is.As for "In other words, arbitrageurs will ultimately succeed in arbing away the price difference."a successful arber just moves to a different market were the free lunch is.
« Last Edit: February 09, 2013, 04:39:12 PM by ArberPro » Logged
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