Subject:
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Re: Euro: one currency does not mean one price :-(
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Newsgroups:
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lugnet.loc.eu, lugnet.lego.direct
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Date:
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Fri, 4 Jan 2002 19:51:40 GMT
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Viewed:
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3164 times
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In lugnet.loc.eu, Lawrence Wilkes writes:
> With LEGO's European wide e-commerce from Denmark there wont be any
> local price differences for VAT.
Right, I think that's what The Economist was driving at... that these sorts
of inexplicable variances will, over time, either become explicable or
become invariant, and that when they become invariant, competitive pressure
will tend to cause them to be equalized at lower price points rather than
higher.
Whether they are correct or not in general? Who knows. Time will tell. The
Euro is a very interesting experiment, one never before attempted on this scale.
Whether they are correct about it when applied to LEGO which has no direct
competition will be even more interesting.
Are the differentials high enough to give arbitrage opportunities? (such as
the US Australia soccer bus differential that I exploited...) Again I dunno.
But I'm certainly interested to see what happens.
As to the Denmark/Germany car/carparts example, that was theirs rather than
mine... :-)
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