3 ms·
No, I was using the word in an economic context. Specifically the action of capturing value in one market with a technology that has been proven in another mar
by jonmc12 15y ago
No, I was using the word in an economic context. Specifically the action of capturing value in one market with a technology that has been proven in another market. Groupon clones, Social game companies, etc
However, I believe incremental improvement is a fitness criteria of technology arbitrage.
- minimax 15y agoAn arbitrage trade is a risk free transaction that involves buying something at one price and then immediately selling it at a higher price. How does creating a Groupon clone fit into that model? How do you get from imitation to arbitrage?
- jonmc12 15y agoConsider Groupon's tipping point sales model to be the innovation. Groupon clones took a method known to work in one market, and applied them to new vertical and geographical markets before Groupon could. As far as the technology (in his case a promotion methodology) can be applied to the market, and as far as this can be predicted with some certainty, an arbitrage opportunity exists. In my mind, yes, arbitrage is inherently a low-risk investment, but only when compared to the potential return of the investment.