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Old 05-29-2014, 06:51 AM   #152
pwalker8
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Join Date: Dec 2006
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Here is an interesting editorial by the WSJ on how the DOJ's selective use of anti-trust prosecution has made it easier for Amazon to play hard ball with the publishers.

Harry Potter and the Prisoner of Amazon -

http://online.wsj.com/articles/harry...zon-1401318787

Here is one quote -
" ...The dispute centers on the structure for selling e-books. Under the so-called agency model, Amazon takes a 30% commission of a listed price, but any consumer discounts come out of Amazon's cut. Amazon prefers a formula to share the cost of markdowns, and publishers are balking. The last rough fight over pricing led to the DoJ charges, and the negotiations with Hachette are Amazon's first with a major publisher since that settlement dictated terms for two years.
..."

Wait, you mean that Amazon now wants to push the cost of all those discounts they offer customers on best sellers down to the publishers rather than eat them? Hum, that doesn't match the narrative that was being pushed by those decrying the evil publishers a few months ago. This is how government intervention tends to distort the market in rather predictable ways.
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