Price Competition happens when similar products are selected by consumers based on their prices, with the cheaper product more likely to be purchased. Price competition usually decreases product prices and therefore benefits consumers. For instance, allowing airlines to compete freely in the USA led to significant price reduction over the following 30 years.
- A Year in Publishing: Secret Meetings and the Powerful Threat of Digital Publishing houses are scrambling to determine how to cope with the rise in digital reading. The iPad, the Kindle, the Nook and the Sony Reader, the strongest players in the eReader market, are four of the biggest threats to the print publishing industry. With everyone reading on a screen, how do publishers make a profit? Just this week, on December 18, Pearson Plc’s Penguin Group, a book publisher, reached a settlement with the U.S. Department of Justice in a case in which Penguin was accused of forging a deal with Apple to prevent other ebook sellers from discounting their prices. KWHS explores this bold deal between Apple and book publishers, the resulting anti-trust lawsuit and the future of traditional book publishing.
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