Title
Borderplex menu evidence for the law of one price: A convergence approach
Publication Date
11-26-2009
Publication Name
Applied Economics Letters
Volume
16
Issue
17
First Page
1717
Last Page
1720
Source Full Text URL
https://doi.org/10.1080/13504850701675516
Document Type
Article
DOI
10.1080/13504850701675516
Abstract
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. © 2009 Taylor & Francis.
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