Copyright

Why do you suppose that many economists have argued that publishers ultimately will switch to...

Question:

Why do you suppose that many economists have argued that publishers ultimately will switch to establishing a single "world price" for each of their textbooks?

Publisher:

The publisher refers to an individual or a company who deals in the printing and delivery of printed publications. The publisher does not create the material but manages the marketing of the publications.

Answer and Explanation:

Many economists have argued that the publishers ultimately will switch to establishing a single world price for each of their textbooks because the textbook market consists of homogenous products, has some restrictions in entry and exit, imperfect information and many firms. The market price of the textbooks gets affected due to the new price quoted by the publisher in case of similarly published books. If one publisher increases the price of the book, the customer will shift to other publishers who are offering a low price for a similar book. Hence, the publisher needs to quote price according to other publishers as the customer will choose the textbook with the lowest price.


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