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144 sats \ 3 replies \ @stack_harder OP 4 Jul \ parent \ on: Should a company police RRPs and fight scalpers? econ
it's cheaper for the same reason lots of things are cheaper in different countries with weaker currencies - regional pricing, exchange rates, market habits, retail competition, lower wages, different taxes etc
And of course, arbitrage is a feature; there's nothing wrong with it, which is why it's annopying to see ninendo make amazon take down these sellers
We call this "price discrimination". The demand curves are different in different places (assuming arbitrage doesn't make everywhere the same place) so companies price to the local demand.
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This doesn't work very well with digital and virtual goods, as the arbers prove - because intervention was needed; the only reason I can think of for this to be employed on digital goods is profit maximization. And this is what feeds disobedience. Good luck taking me off my btcpayserver.
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That’s exactly right. Price discrimination is a profit maximization practice. It’s not super common because it’s often hard to implement.
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