Mike shatzkin analyzes why the publishers instituited agency pricing
HERE.
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well, agency seems to have accomplished its purpose of preventing Amazon from maintaining a stranglehold Kindle share through their deep-pocketed ability to forgo margin for a pricing advantage. The other retailers in the ebook market have their margin protected
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Agency pricing was an attempt to prevent Amazon from monopolizing the ebook market by pricing ebooks below cost. That is fundamentally what it was about.
Publishers actually had to reduce their margins to implement agency pricing .