Taste arbitrage

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The practice of going to an unfashionable neighborhood and buying something achingly a-la-mode at a knock-down price because the Philistines who live there don't understand how valuable it is.

The foundation of credibility derivatives, used principally in the fashion industry, wherein end users can actually swap cashflows on underlying reference garments based on their relative evaluations between areas afflicted with contrasting aesthetics (cross-credibility swaps), or buy outright protection on ostensibly idiotic fashions which common sense tells you no one will be seen dead in, but fashion scribes assure you will be the rage for the next five summers, in the form of credibility default swaps.

See also

• Normal Arbitrage
• Credibility derivatives