Quote:
Originally Posted by crossi
And retailers, after paying the publishers whatever price they set, should be able to sell to the public at whatever price is best for their business wether a high markup, a low markup or giving it away. This takes nothing away from the publishers or the authors who already have their money from when the book was sold to the retailer. Indeed the more books the retailer gives away the more money the authors get since before giving it away the retailer first has to buy it themselves. The money the authors get doesn't depend on the RETAIL price but only on the WHOLESALE price.
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The issue is then that the largest, wealthiest retailer can afford to keep paying the wholesale price and lose money or give stuff away long enough to force smaller competitors out of business, and then as the only reseller left they can demand lower wholesale prices, and they can raise their retail prices as high as they want.
That's considered an unfair, anti-competitive practice. The rules are there to try to make them compete by more consumer- and market-friendly means rather than by laying siege and starving everyone else out.
You can argue if that's a good idea or not in the P&R forum.