Law of one price: BigMac versus Fortnite - A note

Christian Pierdzioch, Timo Schöber and Georg Stadtmann

No 421, Discussion Papers from European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics

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: F30 F31 (search for similar items in EconPapers)
Date: 2021
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Journal Article: Law of one price: BigMac versus Fortnite - A Note (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:euvwdp:421

DOI: 10.11584/opus4-854

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