Journal of Hospitality Financial Management The Professional Refereed Journal of the International Association of Hospitality Financial Management Educators Volume 15 Issue 1 Article 6 2007 An Extention of Burgernomics: Using a Full-Service Restaurant to Measure Purchasing Power Parity David Bojanic Rod Warnick Michael Musante Follow this and additional works at: https://scholarworks.umass.edu/jhfm Recommended Citation Bojanic, David; Warnick, Rod; and Musante, Michael (2007) "An Extention of Burgernomics: Using a Full- Service Restaurant to Measure Purchasing Power Parity," Journal of Hospitality Financial Management: Vol. 15 : Iss. 1 , Article 6. Available at: https://scholarworks.umass.edu/jhfm/vol15/iss1/6 This View Point is brought to you for free and open access by ScholarWorks@UMass Amherst. It has been accepted for inclusion in Journal of Hospitality Financial Management by an authorized editor of ScholarWorks@UMass Amherst. For more information, please contact
[email protected]. AN EXTENSION OF BURGERNOMICS: USING A FULL-SERVICE RESTAURANT PRODUCT TO MEASURE PURCHASING POWER PARITY David Bojanic Rod Warnick And Michael Musante ABSTRACT The purpose of this paper is to determine if the price of a ‘burger’ at a themed restaurant chain (i.e., Hard Rock Café) in the casual dining segment is a better indicator of purchasing power parity (PPP) than the price of a ‘burger’ at a quick-service restaurant chain (i.e., 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.