Definitions for "law of one price"
An economic rule which states that in an efficient market, a security must have...
Two portfolios that will produce exactly the same cash flows in the future must have the same value now.... more on: Law of one price
The assumption that the price of a commodity differs between any two levels of the marketing channel by no more than the transfer costs. For example, by this law, the price is expected to differ between any two locations by no more than transportation costs. Implicit in this law is the assumption of extreme specialization and perfect substitution between domestic and foreign commodities.
Keywords:  notion, identical, cash, flows, assets
The notion that, if two assets have identical cash flows, they should have the same market value.