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I would think the other Amazon markets are subsidising the books, rather than the shareholder. Does free market theory expect bookshop competition to be betwee
by disputin 13y ago
I would think the other Amazon markets are subsidising the books, rather than the shareholder. Does free market theory expect bookshop competition to be between bookshops, homogeneous, or heterogeneous, between bookshops and consumer electronics shops?
- dionidium 13y agoI was referring to the fact that, despite soaring revenues, Amazon is basically running a break-even business and its shareholders are consistently OK with this (i.e. they aren't demanding that Amazon try harder to turn revenue into profit). This, plus great customer service and extremely popular/convenient services like Prime are probably the actual reason that Amazon is beating everyone else. The guy I was responding to is bringing his established beliefs about fair labor to a story that isn't about that, in other words. See here: http://www.businessinsider.com/chart-of-the-day-a-long-view-of-amazons-profits-2013-8 http://www.businessinsider.com/chart-of-the-day-a-long-view-...