Thanatos2k said:
Arbitrage is a consumer right, so yes, it's anti-consumer.
Arbitrage is a behavior of Supply, not Demand. So no, it isn't.
It's also anti-consumer to lock people out when they don't localize titles.
Only if you assume Free Market rules, which don't apply when you have disparity between markets.
EDIT: Only because I don't want to bump this again...
*sigh*
Thanatos2k said:
What does the first sentence have to do with the second? Arbitrage is a RIGHT of the consumer to resell their own property.
Arbitrage is where a "middle man" buys out a weaker, cheap market en masse, and resells it in a stronger, more expensive market. It has nothing to do with consumers' rights; it's just a behavior that exploits disparity between markets and it's performed, overwhelmingly,
by suppliers.
(individual consumers rarely carry the clout to perform arbitrage at a larger economic scale. In practice, in a multiple-market scenario, consumers are only concerned with their own market; it's almost always a firm or other supplier that performs arbitrage at that scale where possible; usually a competitor)
Region locking is not designed just as a restriction for consumers; it's a restriction for other suppliers.
If the markets aren't free, then by definition they're not optimal for the consumer.
With multiple markets, "Optimal" is different for the consumers in each market. You can't treat a multi-market scenario as being "one consumer population" because there isn't just one.
Eventually, due to unchecked arbitrage, the consumers in the weaker economy have no "consumer's rights" to speak of because their market effectively won't exist. Because some middle man will have bought it out and resold it elsewhere.
Which is why a moral argument citing arbitrage as some sort of consumer's right is not only completely ignorant of the concept, but condemnation for its prevention is downright foolish.
If a supplier knows they can make a profit (however small) in a given market as long as arbitrage doesn't take it away, that's an overall benefit for the market as a whole.
Bottom line: Arbitrage is BAD for the market as a whole, because it fucks with both Supply and Demand.