Morning Legal Briefs [Oct 06, 2014, 08:53 am ET] – Share – Viewing Comments
Beamer wrote on Oct 6, 2014, 12:19:
When the average American household earns $40k, and the average Russian household income is $17,000 per year, there's bound to be pricing differences between regions, as there's pricing differences between all goods across regions.
Not all goods. In fact, most goods are priced beyond the buying power of the less wealthy. There's just no way the average Bangladeshi will ever afford a Bugatti Veyron, and Bugatti isn't marketing a cut-rate Veyron to sell to the less well-heeled.
By offering discounted pricing in less-affluent markets, software manufacturers are revealing that they are able to make a profit at this lower price. This implies they're charging a higher price in more affluent markets because that's what they believe those suckers are willing to pay.
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