Publishers have traditionally sold textbooks at different prices in different areas of the world. For example a textbook that sells for $70 in the United States might sell for $5 in India.67 Although the Indian version might be printed on cheaper paper and lack color illustrations, it provides essentially the same information. Indian customers typically cannot afford to pay the U.S. price.
- Use the theories of price discrimination presented in this chapter to explain this strategy.
- If the publisher decides to sell this textbook online, what problems will this present for the pricing strategy? How might the publisher respond?