ABSTRACT
Imperfections regularly occur in disparate supply chains and their related markets. Variations in uncertain supply and demand, inadequate and untimely transmission of information, and illiquidity can frequently cause temporal and spatial price discrepancies within and between supply chains and markets. The spread between prices can widen or narrow, and be accentuated by speculators seeking profit. It is the function of arbitrageurs to minimize these price discrepancies and ensure efficiency through a market-correcting factor. Inefficiencies and distortions can exist if these correcting factors do not occur regularly.
