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S E22: Price Discrimination - Why some people pay less

Think Like An Economist

CHAPTER

Why Hard Back Books Cost More Than Paper Back Books

Never judge a book by the price of its cover. What publishers are doing is figuring out who really wants to read a book as soon as possible, and so is willing to pay more for it. The idea is to get people to naturally sort themselves into groups based on their willingness to pay or their reservation price. You can often haggle with your mobile phone company. Give em a call and threaten to switch providers. Customers service stuff have some power to price discriminate,. to give you a discount if they think you may take your money and custom somewhere else. There's actually a lot of markets where you can haggle or negotiate for a better price. And not just in other countries

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