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Georg Stadtmann, Christian Pierdzioch and Timo Schöber
 
''Law of one price: BigMac versus Fortnite - A Note''
( 2020, Vol. 40 No.4 )
 
 
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
JEL: F3 - International Finance: General
C2 - Single Equation Models; Single Variables: General
 
Manuscript Received : Mar 03 2020 Manuscript Accepted : Dec 31 2020

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