One Example of Price Discrimination Occurs in the Publishing Industry

question 49

Essay

One example of price discrimination occurs in the publishing industry when a publisher initially releases an expensive hardcover edition of a popular novel and later releases a cheaper paperback edition. Use this example to demonstrate the benefits and potential pitfalls of a price discrimination pricing strategy.

---

Definitions:

Primary

Refers to the first or main part of a system or device, such as the primary winding in a transformer which receives the initial electrical energy.

Tertiary

Pertaining to the third order, level, or stage in a sequence or hierarchy.

Tape-Wound Core

A core used in transformers and inductors, made by winding a tape of thin steel around a form, enhancing magnetic properties.

Toroid Core

A doughnut-shaped electromagnet.