Trade · 6 pages · 12 min
Merchants can ship goods toward the higher price, but they cannot ship a haircut, so only the goods are pulled into line.
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Arbitrage here means buying where a thing is cheap and selling where it is dear, until the gap is no longer worth the trouble. That works for a good that can travel, and it does not work for a service that has to be performed on the spot. The opening covers shipping is the arbitrage, freight leaves a remaining band, and a haircut fills no crate.
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