Comments on: Working out Multi Currency prices with burgers

By: Data Heaven – World Bank Opens it’s data • Tim Nash “stuff” Blog

Wed, 21 Apr 2010 15:07:22 +0000

[...] could be used as an alternate to Big Mac index and potentially for subscription services, which require bandwidth usage. I want to note that [...]

By: Tim Nash

Tim Nash — Tue, 06 Apr 2010 13:26:40 +0000

A Big Mac are the same in every country which is why its become a standard with the exception of some Muslim countries where the meat is different but if you read the Observer Index articles it explains in more detail how they get around it, their is a variation of a Big Mac in the states that is bigger but that’s priced separately.

But I think you have missed the whole point is to take into account local market conditions to work out it’s value in relation to countries. Your Argument does hold some weight in 1980s when the Big Mac was not a normal food in some countries but 20 years on I don’t think there are that many first or second world countries where McDonalds are not the norm. It may not work so well in determining value in Haiti or Burma but then I suspect you won’t be working out subscription packages for such countries either.

By: Marchamont

Marchamont — Tue, 06 Apr 2010 13:16:00 +0000

But an American Big Mac is bigger than a European Big Mac, so the theory fails at the first test.

And pricing varies depending on other factors – McDonalds in Budapest before the Iron Curtain fell was very expensive – because it was ultra cool so McD simply charged what the market would bear.

Which is of course, the right way to price any product.

By: Tim Nash

Tim Nash — Tue, 06 Apr 2010 10:25:18 +0000

Disclaimer: This blog can not be held accountable for your cravings and while I don’t fancy a Big Mac might be burgers for lunch!

By: Dom Hodgson

Dom Hodgson — Tue, 06 Apr 2010 10:23:17 +0000

Now I want a big mac