Frictionless market

In economic theory a frictionless market is a financial market without transaction costs. Friction is a type of market incompleteness. Every complete market is frictionless, but the converse does not hold. In a frictionless market the solvency cone is the halfspace normal to the unique price vector. The Black-Scholes model assumes a frictionless market.

Contents

• Assumed frictionless market
• Startup unicorns 5 frictionless markets build a billion dollar startup almost overnight
• References