Textbook publishers often sell the same or essentially identical books in different countries for different prices. Is this an effective form of group price discrimination?

Question

Quizplus · Accepted Answer

This practice is indeed an effective form of group price discrimination because it takes advantage of the price sensitivity of different groups in different markets. However, the first sale doctrine does apply to overseas sales and the labeling of the books as "international" or having a different cover does not significantly change the content of the book. The only limitation to this strategy is that people can buy the books in one country and sell them in another, making money on the price difference, which is known as arbitrage.

Textbook Publishers Often Sell the Same or Essentially Identical Books