[LINK] A call to arms - parallel book imports

[David Lochrin]

On Wednesday 15 July 2009 21:17, Brendan Scott wrote:

> Calling it "economic rationalist theory" doesn't make it wrong.

Perhaps not, but it makes it highly suspect (:-).

>> The flaw in the argument is that many book buyers don't have 
>> the resources & motivation to use Amazon competitively or want 
>> the book immediately, and Dymocks would certainly be prepared 
>> to lose them if it means making twice the profit from the rest.
> 
> I don't follow this argument.  Should only the elites who do have 
> those resources have the benefit of lower prices?

If Dymocks et al can get the import price down they won't change their customers' buying habits much.  Most of those who already shop at Amazon will continue to do so (why would they change?) and those who "don't have the resources & motivation to use Amazon competitively or want the book immediately" will continue to buy over-the-counter.  The only difference will be that the profit from over-the-counter sales will increase because the booksellers have no motivation to drop their shelf prices substantially (why would they change?).

> Why are Australian consumers being charged more for exactly the 
> same product?

Because it's a profit-making opportunity which Dymocks et al were not slow to see.  However it does help support local authors and the local printing industry along the way.

David