Quote:
Originally Posted by tompe
I do not get 1. Since the barrier to entry is huge we have the same situation. And Amazon is abusing its power when negotiating with the publishers.
And 2 is strange. If A, B and C is bad then it seems strange that an article talking about A and how bad it is must mention that B andC are bad also. Why, since the article is about A?
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Sorry, I meant the barrier to entry is huge today because Amazon is executing well and not abusing their power to consumers. If they did abuse that power by jacking up the prices they would open the floodgate for competitors to come in and actually drive the consumers to the competitors. Apple has already demonstrated that they could enter the marketplace in a month. After the competitors enter it's not like Amazon could just lower their prices again and say, "Sorry, it was an accident. We didn't mean it, please come back."
It's the same thing if Amazon actually did abuse their power with the suppliers (publishers). They have a monopoly on the books so Consumers that want the books would have to go elsewhere.