Difference between revisions of "1499"
m (→Explanation: curse auto correct) |
(elaboration.) |
||
Line 9: | Line 9: | ||
==Explanation== | ==Explanation== | ||
{{incomplete|Very early draft.}} | {{incomplete|Very early draft.}} | ||
− | In economics and finance, arbitrage is the practice of taking advantage of a price difference between two or more markets. Some place is giving away unlimited free chips while Cueball and Buzzcut are eating there. Buzzcut is taking advantage of this fact to turn a profit for himself. In the real world one wouldn't be allowed to carry bags full of chips out of the restaurant, nor is | + | In economics and finance, arbitrage is the practice of taking advantage of a price difference between two or more markets to make risk-free profit by buying in the market with a lower price and simultaneously selling in the market with the higher price. |
+ | |||
+ | Some place is giving away unlimited free chips while Cueball and Buzzcut are eating there -- effectively a market selling chips for $0. Buzzcut is taking advantage of this fact to turn a profit for himself by collecting the chips and attempting to resell them at a higher price elsewhere. In the real world one wouldn't be allowed to carry bags full of chips out of the restaurant, nor would there be many buyers for chips taken from a restaurant in this manner, so one is not expected to try to do this. | ||
Title text | Title text |
Revision as of 13:00, 16 March 2015
Arbitrage |
Title text: The invisible hand of the market never texts me back. |
Explanation
This explanation may be incomplete or incorrect: Very early draft. If you can address this issue, please edit the page! Thanks. |
In economics and finance, arbitrage is the practice of taking advantage of a price difference between two or more markets to make risk-free profit by buying in the market with a lower price and simultaneously selling in the market with the higher price.
Some place is giving away unlimited free chips while Cueball and Buzzcut are eating there -- effectively a market selling chips for $0. Buzzcut is taking advantage of this fact to turn a profit for himself by collecting the chips and attempting to resell them at a higher price elsewhere. In the real world one wouldn't be allowed to carry bags full of chips out of the restaurant, nor would there be many buyers for chips taken from a restaurant in this manner, so one is not expected to try to do this.
Title text
In economics, the invisible hand is a metaphor used by Adam Smith to describe unintended social benefits resulting from individual actions.
Transcript
[Cueball and Buzzcut are sitting at a table with a bowl of chips in the middle. Buzzcut has one hand in the bowl of chips, and the other hand behind him in a large bag marked "Chips".]
Buzzcut:
- They're the ones giving chips away!
- If they don't see the arbitrage potential, sucks for them.
[Below the main frame]: In a deep sense, society functions only because we generally avoid taking these people out to dinner.
[Title Text]: The invisible hand of the market never texts me back.
Discussion
No comments yet!