Can someone explain the market economics behind Kindle books being more expensive than the paperback versions? Is it as simple as, demand for Kindle versions is higher, we can make more money from Kindle version, therefore, $X price? @FreakyTheory @patio11 @benthompson @amazon
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Publishers basically don't want to turn off Amazon distribution but really, really don't want a world in which Amazon owns every producer and consumer of the written word and then says "Actually, strictly speaking... we don't need you, Big Five. At all." So they set prices high.
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Really interesting. The point about publishers and Amazon having different incentives is clearly key. My wife and I were talking about this at dinner and ended up landing in a similar place where publishers must be setting high thresholds for prices which Amazon can't go below.
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