Discission Board 3

In: Business and Management

Submitted By nonolucas
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The Law of One Price

The Law of One Price indicates that between any two markets, the difference in prices should not exceed the cost of transport and commercialization
Law of one Price: Evidence. (2011). The Annals of Regional Science, 47(2), 329-351.


This article goes through some controversy around the Spanish Wheat market in South and Central America. It goes through the law of one price and how people were trying to let certain countries get wheat from them for a cheaper price than another country. The law of One Price is there so that you cannot help hinder another country by only raising the prices to them or visa versa with cheaper prices.


The Law of One Price is something that I had no clue existed until I started this course. It is a huge deal to the world economy and it really does make a lot of sense when you take a step back and evaluate it all. The world is always out to hurt people it seems and this is one way we can help make it a more even playing ground for everyone. This “Law of One Price” could even be used to discuss equality in any market for anything really. There should be no reason that someone else gets special treatment just because of which he or she is or what they might believe in. This should almost be considered a natural right in my opinion to be able to buy something for the same price that the other guy gets to buy it for.


Law of one Price: Evidence. (2011). The Annals of Regional Science, 47(2), 329-351.

Testing the law of one price in retail banking: An analysis for Colombia using a pair-wise approach. (2010). Economic Letters, 118(1), 29-32.

The Law of One Price: International Evidence for Canada. (2003). The Canadian Journal of Economics, 36(2),…...

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