What Are Risk Arbitrageurs? Do Their Actions Represent True Arbitrage

question 68

Essay

What are risk arbitrageurs? Do their actions represent true arbitrage?

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Definitions:

Learned Helplessness

A condition marked by an individual's struggle with feeling incapable, stemming from experiencing trauma or constant unsuccessful attempts.

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, through which associations are made between a behavior and the consequences for that behavior.

Extinction

In the study of psychology, this term describes the slow reduction and final elimination of a conditioned response due to the absence of pairing between the conditioned and unconditioned stimuli.

Stimulus Discrimination

The learned ability to differentiate between a conditioned stimulus and other stimuli that have not been paired with an unconditioned stimulus.