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Borderplex Menu Evidence for the Law of One Price : A Convergence Approach

A convergence approach is utilized to examine deviations from the law of one price. Sample data are menu prices for eight identical products sold by international restaurant franchises in Mexico and the United States. The results suggest mean reverting behaviour in real exchange rate movements in response to recent information
Year of publication:
2016
Authors: Bao, Yong
Other Persons: Fullerton, Thomas M. (contributor) ; Lien, Donald D. (contributor)
Publisher: [2016]: [S.l.] : SSRN
Subject: Preiskonvergenz | Price convergence | Schätzung | Estimation | Regionaler Preisindex | Regional price index | Wirtschaftliche Konvergenz | Economic convergence
Description of contents: Abstract [papers.ssrn.com]
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