Law of one price

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Jevons ' law of one price (after William Stanley Jevons ) is a law of microeconomics.

The law states that only a single price must be created in the market for a good, if

• Spatial,
• Time,
• Factual and
• Personal differentiations

Insurers and

• Perfect information

Prevails. These conditions describe the perfect market.

" In the same open market, at any moment, there can not be two prices for the same kind of article ( in the same perfect market, it can at no time be two prices for the same good) "

In the absence of perfect information one suspects a temporary imperfect market. Temporary why, since even in the absence of full information, the market thereby tends to uniform prices, that market participants observe the pricing of other market participants and their pricing based on which of the competitors. Thus, the uniform price arises possibly delayed.

Does not apply to any of the other conditions, the market is called imperfect.

Other phenomena

After Jevon also the Jevons paradox was named that but not directly employed with prices, but with the demand for goods.