It is difficult to practice arbitrage for untradable services or for goods which have a few knowledgeable traders.

Question

Quizplus · Accepted Answer

Arbitrage involves buying a good or service in one market and selling it in another market with a higher price, taking advantage of any price differences. However, if the good or service is untradable (such as personal services), or if there are only a few knowledgeable traders in the market, it may be difficult or impossible to practice arbitrage.

It Is Difficult to Practice Arbitrage for Untradable Services or for Goods