Quote:
Originally Posted by SteveEisenberg
There's no explanation for Amazon selling lots of books at a loss than that they were trying to put financially weaker competitors out of business.
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Sure there is.
It's called basket pricing.
http://dealicacy.com/?p=225
It's practiced regularly by sophisticated retailers all over the world. It leads to big profits *and* increased market share. It is also perfectly legal.
Note that there is a difference between selling "a lot of books at a loss" and selling *all* books at a loss. Just as there is a difference between making a profit off *every* book you sell and making a net profit from selling books.