The arbitrage is the ability to buy ice cream where it's cheap (the store) and sell it where it's expensive (the beach). The margin compress as more folks arriv

The arbitrage is the ability to buy ice cream where it's cheap (the store) and sell it where it's expensive (the beach). The margin compress as more folks arrive to sell because your fixed costs (labor, the van, cogs) remain fixed while your sales volume drops. Definition is: "the simultaneous buying and selling of securities, currency, or commodities in different markets or in derivative forms in order to take advantage of differing prices for the same asset." So in this case you're buying a commodity (ice cream) at the store and selling it at the beach. You are taking advantage of differing prices for the same asset in different markets. So yeah, still arb, imo.