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What Is the Law of One Price? When Would You

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What is the law of one price? When would you expect it to hold and when would you not expect it to hold?


Definitions:

Operant Conditioning

A learning process through which the strength of a behavior is modified by reinforcement or punishment.

Reinforcement

In behavioral psychology, it refers to any stimulus that strengthens or increases the probability of a specific response or behavior.

Habituation

A decrease in behavioral response after lengthy or repeated exposure to a stimulus.

Conditioning

A process of behavior modification in which a response becomes more frequent or more predictable in a given environment due to reinforcement.

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