there are fixed costs to producing the book so it is possible that without price discrimination it would not be possible to sell the book to Thai customers in w

there are fixed costs to producing the book so it is possible that without price discrimination it would not be possible to sell the book to Thai customers in which case the inability of the company to price discriminate decreases social efficiency. For example say the book costs $1 per copy to produce and $10 of fixed costs. There are two customers who are willing to buy the book. The American customer is willing to pay $12 for the book and the Thai customer is willing to pay $4 for the book. With price discrimination the publisher sells both books. One to the Thai for $3 marginal profit and one to the American for $11 marginal profit. For a total profit of $4 after fixed costs. If the publisher cannot price discriminate then they just sell to the American for $11 marginal profit for a total profit of $1 and the Thai person doesn't get a book :( The wiki page on Price Discrimination says the social efficiency impact is unclear (http://en.wikipedia.org/wiki/Price_discrimination http://en.wikipedia.org/wiki/Price_discrimination). Maybe it makes us better off. Maybe it doesn't.