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Many high street bookstores have adult and teen sections where the adult copies of the same books cost more than children’s copies, the only difference being the books’ cover. Prices between the two copies, for both paperback and hardcover, may differ by as much as 17%. Using the idea of price discrimination, explain the price difference between adult and children’s copies. How might the use of the internet affect price search and the ability of firms to segment the market and to price discriminate?
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