Geoblocking Can Increase Consumer Welfare and Improve Income Equality

Joe Kennedy June 5, 2014
June 5, 2014

The practice of “geoblocking,” which occurs when the price and availability of an online product varies according to the geographic location of the customer, has encountered some resistance from advocates, but the practice can benefit consumers by increasing total supply, lowering average prices, and encouraging a competitive market in which consumers are offered an increasingly diverse supply of products. By providing lower prices for consumers in low income nations, it can also be highly progressive. As such, it would be a mistake for policymakers to restrict such pricing practices.