To price discriminate and raise profits, publishers release hardback books first and paperback books later. Diehard fans are willing to pay more than less enthusiastic readers to read the book first.

Question

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This statement is true. Publishers often use price discrimination by releasing hardback books first, which appeals to diehard fans who are willing to pay a higher price for early access. Later, they release the paperback version at a lower price point to attract a broader audience. This strategy allows publishers to increase profits by catering to customers with different price sensitivities.

To Price Discriminate and Raise Profits, Publishers Release Hardback Books