# kaal:claim:4033886-032

**Claim.** When exchanges apply different standards about who may trade on their platform, the market ends up showing different prices for the same asset across exchanges, which is one reason trading arbitrage has become common in crypto.

**Type.** mechanism  **Support.** argued

**Holds when.**

- exchanges excluding participants by residence or other status

**Source quote.**

> When different exchanges apply different standards as to who can trade on their platform, the market sees different prices for the same asset across exchanges.

**From.** Wulf A. Kaal, Samuel Evans, Hayley Howe, *Digital Asset Valuation* (2022), IV.1 Market Pricing, page 30

**Cite as.** Wulf A. Kaal, Samuel Evans, Hayley Howe, Digital Asset Valuation (2022). SSRN: https://ssrn.com/abstract=4033886

**Verify.** sha256 of source PDF `52ba05b1292b1be4bfaf1ee5cf56b14fea9c196d870603e794d7ee316df129bd` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20et%20al.%20-%202022%20-%20Digital%20Asset%20Valuation.pdf

**Failure mode.** access driven price fragmentation  (family: liquidity-and-market-structure-failure)

**Topics.** economics, defi

**Keywords.** market-fragmentation, arbitrage, exchange-access, price-dispersion

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.