As bluegaspode already pointed out, this is price discrimination in
segmented markets, straight out of any first-year undergraduate
economics text. Demand for SBs in Canada is apparently more inelastic
than in the US because of a host of factors, including size of market,
cost of substitutes (considered broadly, including CD players, etc).
Retail regulations matter too, but probably not very much in this case.
As long as Logitech can segment the market, which they do via their
distribution chain, it makes sense for them to charge more in Canada
than in the US. That is not "subsidizing" US consumers -- it's charging
what the Canadian market, and the US market, will bear. As you pointed
out yourself, that is norm for many products in Canada.

Also, I confess to knowing nothing about commercial law in Canada, but
I strongly doubt that Logitech distribution can tell Canadian retailers
what they must charge for the product. MSRP is one thing, but street
price is another. If Canadian retailers have no flexibility to discount
prices, that's part of your problem right there.


-- 
aubuti
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