law of one price

An alternative position: The law of one price holds in the labor market.

Although there is a small spread between these two values the law of one price applies (to each).

After all, this is by definition a violation of the law of one price.

Instead, the Internet would unleash "incredibly vigorous competition to a point that the law of one price is going to hold," she said.

The unexpressed assumption that is the basis for the addition is the law of one price.

Spot-future parity is an application of the law of one price.

When a commodity is for sale at multiple locations, the law of one price is generally believed to hold.

The same asset does not trade at the same price on all markets ("the law of one price").

Transport costs sever the link between exchange rates and the prices of goods implied by the law of one price.

The existence of an SDF is equivalent to the law of one price.

The law of one price is an economic law stated as: "In an efficient market, all identical goods must have only one price."

Perfectly tradable goods, like shares of stock, are subject to the law of one price: they should cost the same amount wherever they are bought.

One way of doing this is to use the purchasing power parity (PPP) theory, also known as the law of one price.

These findings are contained in a study entitled "Why Does the Law of One Price Fail?

The Balassa-Samuelson effect argues that the law of one price is not applicable to all goods internationally, because some goods are not tradable.

Another effect of the common European currency is that differences in prices-in particular in price levels-should decrease because of the law of one price.

If the law of one price is not true for a certain commodity, the price levels will not differ enough from the level predicted by PPP.

By the law of one price, entirely tradable goods cannot vary greatly in price by location (because buyers can source from the lowest cost location).

This is due to the economic law of one price which states "that if trade were free, then identical goods should sell for about the same price throughout the world".

Unlike in the case of classic arbitrage, in case of pairs trading, the law of one price cannot guarantee convergence of prices.

The law of one price says that the same item cannot sustain two different sale prices in the same market (since everyone would buy only at the lower price).

Price dispersion can be viewed as a measure of trading frictions (or, tautologically, as a violation of the law of one price).

Since there are no transaction costs or currency issues the law of one price applies to both commodities, and consumers in either country pay exactly the same price for either good.

He also contributed foundational contributions to behavioral economics, and has provided the intellectual foundation that enables us to understand deviations from the law of one price based on the irrationality of investors.

According to Krugman and Obstfeld, this occurrence of product differentiation and segmented markets results in violations of the law of one price and absolute PPP.