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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