4 ms·

That is exactly what I was thinking. Why should I worry that Amazon makes publishers sell their books for lower prices? No explanation is offered...

amrrs 12y ago
Because what if they repeat the same trick towards Customers? Do we have a choice then?
- icebraining 12y ago
  Why wouldn't we? There are hundreds of companies selling books, and you can start a new one with essentially nothing. Book selling is not a natural monopoly which requires heavy investment to enter into. I see no reason to assume Amazon can keep a monopoly with high prices simply because they squeezed the publishers. Low prices is what keeps them in power. (Btw, I'm playing Devil's advocate here. I don't buy at Amazon for ethical reasons - I just don't find their purchasing power to be a problem)
  - spacefight 12y ago
    > I don't buy at Amazon for ethical reasons What's the reason in your case? I genuinely wonder - considering dumping them too.
    - icebraining 12y ago
      Nothing too specific, I'm afraid; the treatment of workers, the Kindle remote deletion, the one-click patent, cutting off Wikileaks. This combined with my general dislike of very large companies (notwithstanding my pro-Google bias).
  - k-mcgrady 12y ago
    >> "Why wouldn't we? There are hundreds of companies selling books, and you can start a new one with essentially nothing." If Amazon screws the publishers out of business and begins publishing themselves our alternatives to Amazon would be reduced significantly. Then they have the power to increase prices for consumers because there's very little we can do. We can still use libraries and book shops but for new releases published by Amazon they could make themselves sole distributor.
- ajross 12y ago
  Repeating the same trick toward customers would be "monopoly". And yes, it would be bad. And our choice at that point would be antitrust action, presumably. But again: the linked article isn't about monopoly power. If you want to draw a line between this behavior and a future monopoly, it needs clearer argumentation.
- yxhuvud 12y ago
  Repeat what trick? Selling cheaper? Bring it on!
  - amrrs 12y ago
    No, Not selling cheaper. It's selling at the price that they want.
k-mcgrady 12y ago
Because they could squeeze publishers out and publish directly (which they are already doing to some extent). When they control the market they can then raise prices as high as they want because they are publisher and distributor. In the end consumers get screwed.
- Kalium 12y ago
  I, for one, am quite happy to be "screwed" by lower prices. Recall that Amazon publishes directly right now. They haven't raised prices unreasonably.
  - k-mcgrady 12y ago
    Let me explain further. Take this scenario: - Amazon continues to drops prices. Great for consumers. - They drop prices so low that either publishers reduce how much they pay writers or they go out of business. - Writers then start shifting publishing to Amazon who can give them a bigger piece of the pie. - Publishers die out leaving Amazon as sole publisher + distributor. - NOW they can exploit their power. They can raise prices and we can do nothing as they are the sole publisher and distributor. - Things are good now for consumers but long term Amazon can increase and exploit their power. Maybe they are a nice company and won't screw us but that's not a risk we should be willing to take.
    - WalterBright 12y ago
      Being the internet, it's easy for new competitors to start up, and existing competitors to expand. See oreilly.com, for example.
      - cbd1984 12y ago
        It's easy unless Amazon has signed people to exclusive contracts, such that your new startup can't get any of the authors people want to read.
        12y ago
antientropic 12y ago
Actually Krugman did give an explanation: "It’s not just about the money, although that’s important [...] What matters is whether it has too much power, and is abusing that power. Well, it does, and it is." And why that abuse of power is a bad thing: "It’s definitely possible, with some extra effort, to buy a book you’ve heard about even if Amazon doesn’t carry it — but if Amazon doesn’t carry that book, you’re much less likely to hear about it in the first place."

amrrs 12y ago

Because what if they repeat the same trick towards Customers? Do we have a choice then?

icebraining 12y ago
Why wouldn't we? There are hundreds of companies selling books, and you can start a new one with essentially nothing. Book selling is not a natural monopoly which requires heavy investment to enter into. I see no reason to assume Amazon can keep a monopoly with high prices simply because they squeezed the publishers. Low prices is what keeps them in power. (Btw, I'm playing Devil's advocate here. I don't buy at Amazon for ethical reasons - I just don't find their purchasing power to be a problem)
- spacefight 12y ago
  > I don't buy at Amazon for ethical reasons What's the reason in your case? I genuinely wonder - considering dumping them too.
  - icebraining 12y ago
    Nothing too specific, I'm afraid; the treatment of workers, the Kindle remote deletion, the one-click patent, cutting off Wikileaks. This combined with my general dislike of very large companies (notwithstanding my pro-Google bias).
- k-mcgrady 12y ago
  >> "Why wouldn't we? There are hundreds of companies selling books, and you can start a new one with essentially nothing." If Amazon screws the publishers out of business and begins publishing themselves our alternatives to Amazon would be reduced significantly. Then they have the power to increase prices for consumers because there's very little we can do. We can still use libraries and book shops but for new releases published by Amazon they could make themselves sole distributor.
ajross 12y ago
Repeating the same trick toward customers would be "monopoly". And yes, it would be bad. And our choice at that point would be antitrust action, presumably. But again: the linked article isn't about monopoly power. If you want to draw a line between this behavior and a future monopoly, it needs clearer argumentation.
yxhuvud 12y ago
Repeat what trick? Selling cheaper? Bring it on!
- amrrs 12y ago
  No, Not selling cheaper. It's selling at the price that they want.

k-mcgrady 12y ago

Because they could squeeze publishers out and publish directly (which they are already doing to some extent). When they control the market they can then raise prices as high as they want because they are publisher and distributor. In the end consumers get screwed.

Kalium 12y ago
I, for one, am quite happy to be "screwed" by lower prices. Recall that Amazon publishes directly right now. They haven't raised prices unreasonably.
- k-mcgrady 12y ago
  Let me explain further. Take this scenario: - Amazon continues to drops prices. Great for consumers. - They drop prices so low that either publishers reduce how much they pay writers or they go out of business. - Writers then start shifting publishing to Amazon who can give them a bigger piece of the pie. - Publishers die out leaving Amazon as sole publisher + distributor. - NOW they can exploit their power. They can raise prices and we can do nothing as they are the sole publisher and distributor. - Things are good now for consumers but long term Amazon can increase and exploit their power. Maybe they are a nice company and won't screw us but that's not a risk we should be willing to take.
  - WalterBright 12y ago
    Being the internet, it's easy for new competitors to start up, and existing competitors to expand. See oreilly.com, for example.
    - cbd1984 12y ago
      It's easy unless Amazon has signed people to exclusive contracts, such that your new startup can't get any of the authors people want to read.
      - 12y ago

antientropic 12y ago

Actually Krugman did give an explanation: "It’s not just about the money, although that’s important [...] What matters is whether it has too much power, and is abusing that power. Well, it does, and it is." And why that abuse of power is a bad thing: "It’s definitely possible, with some extra effort, to buy a book you’ve heard about even if Amazon doesn’t carry it — but if Amazon doesn’t carry that book, you’re much less likely to hear about it in the first place."