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Originally Posted by rhadin
The fallacy in your argument is that you are assuming that Hachette would sell 74% more books. The numbers Amazon gave were over its entire catalog, not just the Hachette catalog, and the numbers only pertain to Amazon's customer base, which does not include all of the other outlets that sell Hachette books.
I suspect that if Amazon were willing to guarantee that increase over the full distribution chain, Hachette would agree. But I also suspect that Amazon is unwilling to even guarantee such a sales increase among its own customers.
As to whether it is a good business plan or not, I cannot say. There is too much missing data that is fundamental to making a sound business decision. I'm surprised that anyone here on MR believes they have enough data to determine who is objectively right or wrong in this dispute.
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When a book is in hardcover, I do see sales of the eBook going up if the eBook is priced at $9.99. But to keep it there are the eBook is old enough and sales won't really continue. The price needs to drop once the hardcover days are over. I've bought some eBooks at $9.99 because I wanted it now. But if it was higher say $12.99 or $14.99, no way would I buy. So I do think that sales would be higher at $9.99 then $14.99. People that wouldn't have bought the hardcover wouldn't be paying $14.99 for the eBook. There's a lot of people out there just no willing to pay that much and they very well might fork over $9.99 while the book in in hardcover.