Market asymmetries, arbitrage and transition: the case of Russia

Abstract

This paper develops the concept of corporate strategy as a process of arbitrage between markets where asymmetries are exploited by corporate managers. From a development position, this article argues that arbitrage is possible when encountering price asymmetries where there is a technical opportunity to realize arbitrage. Examples are taken from Russian forestry, construction and mining and car industries reveal how executives can create and employ price asymmetries. However the concept of arbitrage can be extended where there are, for example, opportunities to exploit differences in health and safety, labour law more generally, environmental regulations and knowledge.