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The Law Of One Price And Virtual Worlds, Michael Morrison

Economics ETDs

Price convergence and purchasing power parity are two important foundations to international trade theory. Yet there is still no consensus on their existence, despite numerous studies. While the debate over price convergence and purchasing power parity continues, the last several years have seen a substantial rise in the use of virtual worlds. Virtual worlds are interactive digital environments where individuals with an internet connection can come together to communicate, cooperate and trade. Virtual worlds create smaller copies of the real world. These copies lack many of the complexities found in the real world. This feature makes virtual worlds a unique …