Book Publishers Often Use Price Discrimination Across Time to Increase

question 117

Essay

Book publishers often use price discrimination across time to increase profits.Toni Morrison's book, A Mercy, was published as a hardcover edition in November 2008 at a price of $23.95.In August 2009, the paperback version was published at a price of $15.00.Assume that 100,000 hardcover books were sold to hard-core Toni Morrison fans in November 2008, and 400,000 paperback books were sold to casual readers in August 2009.Illustrate each of these situations graphically.Assume that the marginal cost of the hardcover version is $2.00 and the marginal cost of the paperback version is $0.75.

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Definitions:

Social Movement

An organized group action focused on promoting or resisting change in society or an institution.

Resource Mobilization

Refers to the process by which social movements crystallize because of the increasing organizational, material, and other resources of movement members.

Routine Collective Action

Collective actions performed as part of an established habit or practice, typically within societal or organizational norms.

Social Networks

Structures made up of individuals or organizations connected by one or more specific types of interdependency, such as friendships, kinship, common interests, financial exchange, or relationships of beliefs.