An Extension of Burgernomics: using a Full-Service Restaurant Product to Measure Purchasing Power Parity
Abstract
The Purpose of This Paper is to Determine If the Price of a Hamburger at a Themed Restaurant Chain (Hard Rock Cafe) in the Casual Dining Segment is a Better Indicator of Purchasing Power Parity Than the Price of a Hamburger at a Quick-Service Restaurant Chain (McDonald's). the "Big Mac Index" Published by the Economist is the Source for the Price of a Big Mac Sandwich in Each of the Represented Countries. the Index Was Originally Developed to Measure Purchasing Power Parity based on Exchange Rates. an Alternative Index, the Legendary Burger Index, is Developed and Compared to the Big Mac Index to Determine the Accuracy of the Prices for the Two Types of Restaurants in Measuring Purchasing Power Parity. the Legendary Burger Index Was Shown to Perform Slightly Better Than the Big Mac Index When Examining Currency Valuations and the Relationship between the Burger Price and Various Economic Variables. © 2007, Taylor & Francis Group, LLC.
Recommended Citation
Bojanic, D., Warnick, R., & Musante, M. (2007). An Extension of Burgernomics: using a Full-Service Restaurant Product to Measure Purchasing Power Parity. Journal of Hospitality Financial Management, 15(1), pp. 57-69. Taylor and Francis Group; Routledge.
The definitive version is available at https://doi.org/10.1080/10913211.2007.10653830
Department(s)
Business and Information Technology
International Standard Serial Number (ISSN)
1091-3211
Document Type
Article - Journal
Document Version
Citation
File Type
text
Language(s)
English
Rights
© 2023 Taylor and Francis Group; Routledge, All rights reserved.
Publication Date
01 Jan 2007
