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Law of one price: BigMac versus Fortnite - A Note

Georg Stadtmann (), Christian Pierdzioch and Timo Schöber ()
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Georg Stadtmann: University of Southern Denmark and European-University Viadrina Frankfurt (Oder)
Timo Schöber: European-University Viadrina Frankfurt (Oder)

Economics Bulletin, 2020, vol. 40, issue 4, 3338-3348

Abstract: We analyze the law of one price (LoP) based on BigMac and Fortnite prices. We find a positive but less than perfect correlation between the over-/undervaluations of the two indices. While we cannot reject the LoP for the Fortnite data, we find that it does not hold for the BigMac data.

Keywords: Fortnite; BigMac; law of one price (search for similar items in EconPapers)
JEL-codes: F3 C2 (search for similar items in EconPapers)
Date: 2020-12-31
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