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Record W3142397239

Law of One Price: International Restaurant Border Pricing

2014· article· en· W3142397239 on OpenAlexaboutno aff
maite piedra

Bibliographic record

VenueJournal for Global Business and Community · 2014
Typearticle
Languageen
FieldEconomics, Econometrics and Finance
TopicMerger and Competition Analysis
Canadian institutionsnot available
Fundersnot available
KeywordsLaw of one priceArbitragePurchasing power parityProduct (mathematics)EconomicsExchange rateCurrencyFinancial economicsCommercePrice levelMid priceMonetary economics
DOInot available

Abstract

fetched live from OpenAlex

This study models the article entitled, “Cross-border restaurant price and exchange rate interactions” by Thomas M. Fullerton Jr., Karen P. Fierro, and Emmanuel Villalobos, Department of Economics & Finance, University of Texas at El Paso, TX 79968-0543, USA. The Law of One Price, in essence, states that a good must sell for the same price in all locations. In efficient markets, when two products are identical, it is intuitive that the two products sell for the same price. However, when these product prices are mismatched, there is an opportunity for the buyer/consumer to arbitrage the mismatching; that is, to take advantage and buy an identical product from another market at a below-equilibrium price. This concept can be traced back to 1760-1770 France, when economists began to apply this “law” to international markets.1 But does the concept actually hold true across political borders? According to the Purchasing Power Parity (PPP), the exchange rate between two currencies should adjust so that, when expressed in the same currency, an identical good in two different countries has the same price.2 For example, if the PPP holds, a product that sells for $1.50 CAN should sell for $1.00 USD, if the exchange rate between the countries is $1.50USD/CAN. This study provides a snapshot analysis into the pricing activity of five international restaurant franchises on both sides of the United States/Canada border in Port Huron, Michigan and Sarnia, Ontario. Through this analysis, I seek to identify opportunities for consumer cross-border arbitrage.

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame distilled prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.

metaresearch head score (Codex)0.001
metaresearch head score (Gemma)0.000
Version: codex-gemma-dda1882f352aValidation status: machine_predicted_unvalidated
Candidate categoriesnone
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Theoretical or conceptual · Consensus signal: Theoretical or conceptual
GenreCandidate signal: Empirical · Consensus signal: Empirical
Teacher disagreement score0.514
Threshold uncertainty score0.301

Codex and Gemma teacher scores by category

CategoryCodexGemma
Metaresearch0.0010.000
Meta-epidemiology (narrow)0.0000.000
Meta-epidemiology (broad)0.0000.000
Bibliometrics0.0000.000
Science and technology studies0.0000.000
Scholarly communication0.0000.000
Open science0.0000.000
Research integrity0.0000.000
Insufficient payload (model declined to judge)0.0000.000

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.036
GPT teacher head0.277
Teacher spread0.242 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one teacher head, not a consensus.

The models applied no category: nothing in the taxonomy fit this work.
Study designTheoretical or conceptual
Domainnot available
GenreEmpirical

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations0
Published2014
Admission routes1
Has abstractyes

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