Transaction costs and market frictions make arbitrage impossible between certain markets
the verdict
SUPPORTED
the evidence backs this
confidence 77/100
Transaction costs and market frictions act as significant barriers that prevent efficient price convergence and make complete arbitrage impossible between certain markets.
Evidence for · 3
Social capital and transaction costs in millet markets.
2018 · cited by 1
Paper 0 establishes that significant transaction costs in regional markets obstruct market integration and efficient access.
See more details
More for · 2
Financial frictions and stock return: A novel least minus more frictional factor for asset pricing models in emerging economies.
2025 · cited by 0
Paper 2 demonstrates that financial frictions across markets significantly impact returns and pricing anomalies.
Financial Intermediation and Fire Sales with Liquidity Risk Pricing
2023 · cited by 0
Paper 5 models how liquidity shocks and market frictions restrict asset reselling capabilities and arbitrage efficiency.