ben82 Joined: Jan 31, 2002 Posts: 107 From: London, UK PM |
Bluetooth may be more expensive in UK for many reasons.
There could be few sellers or distributors in the UK supplying bluetooth. And/or low supply of them to the UK.
The above can arise if manufacturers see the UK as demand insufficient and decide not to sell to the UK. The manufacturers would lose if they decide to supply UK especially if they have a rising MC fucntion. They would supply to a higher demand group (US) A situation of excess demand prevails in UK and prices are higher than should be.
The other less likey reason would be if the UK demand for bluetooth was highly inelastic relative to US, meaning customers are highly price insensitive, customers would pay a higher price therefore bluetooth become more expensive in the UK. This is unlikely as demand for bluetooth in UK is small.
I would discuss futhur but my head is hurting.
Chief Business Economist
BEN S |