EC sends Statements of Objections to Valve and five publishers on “geo-blocking”

Re:EC sends Statements of Objections to Valve and five publi... by michaelmrose on Sunday April 07, 2019 @04:14AM (#19595516)

Imagine that based on local income a digital product that has virtually no marginal cost is $25 in one market and $50 in another for whatever currency you please.

If someone in market B can by clicking over to a different storefront for market A then logically the vendor will no longer offer the good at the lessor rate in market A.

They will have to figure out what price maximizes revenue in both and it will surely disadvantage buyers in market A because the vendor gains as much for one market B buyer as two market A buyers.

If 40% of your buyers are from poor land then losing every one of them is as costly as dropping richland users prices by 1/3.

What if the vendor offered coupons available only locally to make it more feasible to differentiate prices while keeping stuff portable?

[ Parent | on HN ]

Re:EC sends Statements of Objections to Valve and five publi... by rcxdude on Sunday April 07, 2019 @05:41AM (#19595806)

Because this isn't what happens. Price discrimination, if done perfectly, minimises the value the consumer can get and maximises the value the seller can extract from them. Overall it is a negative for consumers.

[ Parent | on HN ]

Re:EC sends Statements of Objections to Valve and five publi... by londons_explore on Monday April 08, 2019 @11:55PM (#19611650)

Vendors of digital goods could use other ways to price it. For example, the product costs $50, but show us your tax returns and we'll discount to $25.

'Student discount' is the same sort of thing, and common across Europe.

[ Parent | on HN ]