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Origins of arbitrage

Published online by Cambridge University Press:  11 May 2021

Geoffrey Poitras Open the ORCID record for Geoffrey Poitras [Opens in a new window]
Geoffrey Poitras*
Affiliation:
Beedie School of Business, Simon Fraser University
*
Geoffrey Poitras, Beedie School of Business, Simon Fraser University, VancouverBC, CanadaV5A 1S6; email: [email protected]; website: www.sfu.ca/~poitras.
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Abstract

Following a review of the etymology and modern usage of the term ‘arbitrage’, this article explores the relevance of historical context to possible instances of ancient arbitrage activity. Types of possible ‘arbitrage’ associated with the use of overvalued coinage in regions of Greek influence are considered. Comparison with Roman civilization reveals the relevance of social attitudes and legal institutions to the ability to execute arbitrage trades. Specific attention is given to the possibility of arbitrage across the Roman frontier to India and the impact of debasements during the imperial period. Recognizing that sources prior to early modern times are scant, numismatic, epigraphic and literary evidence that is available to make inferences about ancient arbitrage activity is assessed.

Keywords

arbitrageGreek coinagebimetallismRoman coinagedebasement
Type
Articles
Information
Financial History Review , Volume 28 , Issue 1 , April 2021 , pp. 96 - 123
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Copyright
Copyright © The Author(s), 2021. Published by Cambridge University Press on behalf of the European Association for Banking and Financial History

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Footnotes

The helpful comments of two anonymous referees are gratefully acknowledged.

References

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