Quote:
Originally Posted by tubemonkey
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.
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And with that sentence, you basically prove the publishers' case for agency pricing. The current contract battle between Amazon and Hatchette, where Amazon is basically saying the publishers need to cut their price so Amazon can sell those ebooks at a discount and still make a profit, is the expected result of Amazon setting the price point.