If you ask me (and no one did) Amazon lowered pricing because they knew it would sell more books. They were in the business for year and they know how many books were selling used--at that under 10 and under 5 sweet spot. They were responding to market dynamics not necessarily putting downward pressure on prices because they thought it was fun. It happened to hurt the competition, which was a double-bonus for them, but the fact is, lowering prices sold more books--and it brought some readers (myself included) back into buying new books instead of used.
Konrath loves to be in the middle of controversy. I'm sometimes surprised he wasn't a lawyer. :>)
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