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This could be good for Amazon and consumers if the group gets big enough. Amazon could use it as clout against publishers to get them to push down e-book prices. Don't forget, Amazon draws a lot of inspiration from Apple and is probably looking to do what Apple did with music: gain a strong enough foothold to dictate cheap prices and profit from it.
I don't think this boycott is silly or that people misunderstand the Amazon's pricing or anything else. These people clearly feel that e-books should be cheap (something I'd think most on this forum could sympathize with). It makes sense that if one person made a personal choice not to purchase books over $9.99, he'd want to bring attention to this and why he does it. Looks like it's working to some extent.
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