Quote:
Originally Posted by Steve Jordan
Not necessarily. If consumers can get digital files easier and cheaper, they may buy in larger quantities, and the profits for the authors/publishers can be higher than they are now (especially when the cost of printing and moving paper product is removed). Prices don't have to go up, if volume goes up.
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I hope you're right. I see two current examples.
ATM fees. We know .. the banks know .. and studies show that it costs pennies for a cash withdrawal at a "foreign" bank's ATM. And yet they charge (at least they charge me) $2.75 per withdrawal. They can do this because I/we have limited choices to get our necessary cash.
Cell phone plans. Specifically the unlimited everything plans. I remember them cost over $100/mos. Then we had $99 then $69 now I see $50. Perhaps, even less. Lots of competition despite limited infrastructure. Profits may be squeezed but consumers benefit at least temporarily.