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Originally Posted by Sil_liS
But does that mean that any writer that makes it to the self-sustaining zone takes the source of income from another author that is in the zone?
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I would say no. An author can't take that income from anyone else. All they can do is to persuade the reader to buy their books. It is the reader's money until the reader decides where to spend it.
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This means that it is in the publisher's best interest to limit the number of titles on the market.
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If there were one publisher, yes. But with multiple publishers, they want to shove the other publishers books off the shelves. Look at Coke and Pepsi, they put out so many variations of their products, and one of the reasons they do this is to dominate shelf space.