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Originally Posted by Fbone
Not the same thing. B&N wasn't selling hardcovers below cost. Amazon admitted to selling certain ebooks (about 25% of bestsellers) below cost.
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So what if some ebooks were sold below cost?! The public doesn't know that. All they know is that certain categories of paper books and ebooks are steeply discounted and that's the price they expect for future purchases. The below cost differentiation is a red herring and irrelevant to this discussion.
Maybe Amazon should try a different approach. They could let the publishers set retail prices for ebooks and then when a customer buys one, Amazon gives that customer a $3 to $5 credit in the Kindle store or at Amazon.com. That's the strategy retailers use when selling products from companies that won't allow discounts on certain items - iPads, gaming systems, etc.