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Originally Posted by DuckieTigger
Second the assumption that a competitor can just as easily discount as Amazon and overall make a profit is not true. If it wasn't for Amazons "secret sauce" in marketing and presenting their books, the losses from certain titles would be hard to recover from other titles.
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I don't know what "secret sauce" you are referring to but the big advantage Amazon has had is Wall Street's willingness to let it continue to lose money and not pay dividends, something Wall Street has been unwilling to do for any other company. As I wrote earlier, I suspect that Amazon's recent aggressiveness with Hachette and Disney is a direct result of Wall Street's change in tune and the now requirement that Amazon produce profits and dividends just like other companies are required to do.