Price Arbitrage for Mom & Pop Store Product Traders

Project Details


2012 (Dec)


Abhinav Verma, Bhaskar Vedula, Raphael Schilling, Rhianna Prabhu, Vivek Aranha





Currently Mom & Pop Stores do not have much insight into the price changes of electronic
products. This information is useful for the stores to plan for inventory purchases prior to the
price increases and generate profits on the products due to the increased price. Currently, this
decision to buy is based on intuition and there is no real science or reasoning behind it.
Traders’ buying patterns currently lead to increased inventory or missed opportunities due to
incorrect price change assumptions.

We are consultants to Mom & Pop Stores, and our goal is to help them get more reliable
information regarding the price changes thus resulting in increased profits and lower inventory
holding costs. The Mom & Pop stores could make profits by buying products through
that are likely to have a price increase within the next 24 hours. These product traders can utilize
information asymmetry to sell at high prices to their customers and would thus be able to take
advantage of the price arbitrage opportunity.

Application Area: