Quote:
Originally Posted by caleb72
So if we accept that the wholesale/retail distinction is not inherent in a free market system, the we would say your second paragraph is just two instances of the first paragraph.
1. The publisher sells to the retailer
2. The retailer sells to the consumer
So in this case, we have the seller from step 1 restricting how the seller in step 2 can price its goods.
Is this contrary to the spirit of a free market economy? I don't know really. The fact that seller number 1 puts a restriction on what seller 2 can do with that product seems not that different to the fact that in this case, seller 2 puts a range of restrictions on what the end consumer can do with the product.
At least seller 2 can actually sell the product. The consumer's got no chance.
Regards
Caleb
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Of course the consumer has a choice. He can decide not to buy the product. There are lot of other books to choose from; if you consider a particular book to be too expensive, don't buy it. Or just wait a while - the price will probably fall.