Friday, January 11, 2008

Meat arbitrage -- a behavioral analysis

When putting together breakfast sandwiches, Manhattan's sandwich smiths display curiously anomalous behavior. They put one sausage patty on there with your eggs (there are those who also order cheese), but ca 3 pieces of bacon. Now, as anyone who has ordered in a suburban restaurant can tell you, there is rough parity between sausage patties and slices of bacon, sometimes 2 sausage patties is sold for the cost of 3 slices of bacon, sometimes you go 3 for 3.

In Manhattan, however, the fact that sausage patties are a little bigger than bacon slices confuses the handlers, who do not have a well-formed concept of intrinsic meat unit parity.

This, of course, suggests a possible play, wherein multiple slices of (underpriced) bacon might be sourced in the city and transported to the suburbs, for some mad profits. Just don't tell anybody, or this window of arb opportunity will slam mercilessly shut.

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