If transportation costs are low,the same product should cost the same amount in different locations. If this statement is false, then there is an arbitrage profit for those who can "buy low" and "sell high". This NY Times article claims that there are some "bargains" to be found right now in NYC. The continued search for such opportunities is the reason why economists believe that there aren't "$20 bills lying around on the ground."
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01/28/2012
The Law of One Price? Evidence from the NYC Real Estate Market
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