The reason that movie videotapes cost more money immediately after they are released than they do six months later is due to price discrimination.

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Price discrimination is the practice of charging different prices for the same product or service based on different customers' willingness to pay. In the case of movie videotapes, the studios charge higher prices for new releases when demand is high among consumers who are willing to pay a premium for the convenience of owning the latest movies. As demand wanes over time, the studios lower the prices to appeal to consumers who are more price-sensitive and willing to wait for a better deal. This type of price discrimination is common in many industries, including airlines, hotels, and entertainment.

The Reason That Movie Videotapes Cost More Money Immediately After