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Other Fields Homework Help Economics Topic started by: jacksonfive09 on Feb 27, 2019



Title: Under what circumstances will the law of one price hold, and when might it not hold?
Post by: jacksonfive09 on Feb 27, 2019
Under what circumstances will the law of one price hold, and when might it not hold?


Title: Under what circumstances will the law of one price hold, and when might it not hold?
Post by: samah952 on Feb 27, 2019
When arbitrage can easily occur and transactions costs are zero, the law of one price will hold, but if transactions costs are not zero, the law of one price may not hold.