Arbitrage

What is arbitrage?

Arbitrage is when you buy low and sell high.

Specifically, you buy a low-priced good in one market and resell it in another market where the price is higher. This effectively brings the prices in the two markets closer together, making it harder for firms to price discriminate.

How does this benefit you? Watch the video to find out!

To learn more about arbitrage, watch When in India, Get a Haircut.