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Platforms as arbitrageurs and facilitators of arbitrage- a simple analysis

Author

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  • Waterson, Michael

    (University of Warwick)

Abstract

This paper analyses the consumer impacts of arbitrage focusing on the significant role of internet platforms as monopolistic arbitrageurs between essentially competitive sub-markets that have not been previously linked. As arbitrageurs, there is the potential for them to create consumer benefit, but for a series of reasons, we show that consumer welfare may not be enhanced and that particular sections of the community may be disadvantaged by their actions.

Suggested Citation

  • Waterson, Michael, 2023. "Platforms as arbitrageurs and facilitators of arbitrage- a simple analysis," The Warwick Economics Research Paper Series (TWERPS) 1481, University of Warwick, Department of Economics.
    • Handle: RePEc:wrk:warwec:1481
    as

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    File URL: https://warwick.ac.uk/fac/soc/economics/research/workingpapers/2023/twerp_1481_-_waterson.pdf
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    References listed on IDEAS

    as
    1. David Ronayne, 2021. "Price Comparison Websites," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 62(3), pages 1081-1110, August.
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    8. Poitras, Geoffrey, 2021. "Origins of arbitrage," Financial History Review, Cambridge University Press, vol. 28(1), pages 96-123, April.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade

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