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Out of context: Reply #30135

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    For today, I am not going to talk about whether markets are efficient; I am going to show one picture. I claim this is the single most convincing evidence that the law of one price doesn't necessarily hold. This is a photo that was taken in Buenos Aires.

    Some economists have argued that this is not a violation of anything. This is price discrimination against Americans who are too stupid to know the Spanish word for orange juice, and to instance to notice that the photograph is identical. Nonetheless, economic theory says we shouldn't have that. That's all I'm going to say about financial markets for now.

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