tag:blogger.com,1999:blog-7169279.post7947352332618226992..comments2023-11-24T03:20:02.361-07:00Comments on Tufte's Economics Classes Blog - A Living Textbook: Apple, The Puppet MasterDr. Tuftehttp://www.blogger.com/profile/17397586052171706438noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-7169279.post-19187534083548851482010-09-14T14:04:46.874-06:002010-09-14T14:04:46.874-06:00As a kindle fan I think I have to interject here a...As a kindle fan I think I have to interject here and question the claim that Apple was exercising monopoly power in this instance. It seems to me that had the situation been reversed and Amazon was charging more and Apple less that Macmillan would have sided with Amazon and forced a similar concession out of Apple. I see this as being more of a oligopoly situation. Both Apple and Amazon are Granthttps://www.blogger.com/profile/15059755847882340838noreply@blogger.comtag:blogger.com,1999:blog-7169279.post-59311793831429564582010-09-13T15:01:58.150-06:002010-09-13T15:01:58.150-06:00Brett:
Don't jump to the assumption that &quo...Brett:<br /><br />Don't jump to the assumption that "consumers will be the ones who suffer".<br /><br />Are they suffering if they'd be willing to pay $25, a hardcover costs $20, Apple will charge $15, and Amazon would have charged $10?<br /><br />It's easy to say they could have gotten $15 in consumer surplus from Amazon, but now will only get $10, and therefore they'veDr. Tuftehttps://www.blogger.com/profile/17397586052171706438noreply@blogger.comtag:blogger.com,1999:blog-7169279.post-12547684992674064372010-09-13T14:56:20.036-06:002010-09-13T14:56:20.036-06:00I have a Kindle, so I find this interesting.
But,...I have a Kindle, so I find this interesting.<br /><br />But, let's think about iTunes. With a network externality and a decent price point, Apple was able to get people to pay for music.<br /><br />I wonder if they'll kill people paying for books by doing the opposite?Dr. Tuftehttps://www.blogger.com/profile/17397586052171706438noreply@blogger.comtag:blogger.com,1999:blog-7169279.post-9374382627587505222010-09-13T14:55:04.079-06:002010-09-13T14:55:04.079-06:00Thanks Jedora Rules ... but you probably weren'...Thanks Jedora Rules ... but you probably weren't clear that "Dave" was Dr. Tufte. ;)<br /><br />What I was implying, and what I think iPoser answered later, is that it wasn't clear they understood what they were writing, or were just repeating something that sounded good. <br /><br />I figured it was OK, but I was just a little suspicious, so I asked.Dr. Tuftehttps://www.blogger.com/profile/17397586052171706438noreply@blogger.comtag:blogger.com,1999:blog-7169279.post-59336317766090164482010-09-09T23:14:38.802-06:002010-09-09T23:14:38.802-06:00Once again, the consumers will be the ones who suf...Once again, the consumers will be the ones who suffer financially from the "behind the scenes" actions of the parties involved in this price-fixing. Although we don't know the exact deal that Amazon and MacMillan agreed to, we can be assured that neither party will turn a loss from it. It will be interesting to see if any anti-trust lawsuits arise or if this will simply blow past Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7169279.post-77984058619152335842010-09-09T19:56:53.190-06:002010-09-09T19:56:53.190-06:00Indeed, one of the few advantages of a Kindle was ...Indeed, one of the few advantages of a Kindle was the lower price for eBooks. Now Apple has squashed that in its behind the scenes deal with MacMillan.<br /><br /> An "agency" model is centered on the idea that the publisher is selling to the end-consumer and is thus setting the price of the product, so the “agent”, (Amazon in this case, but generally a retailer) that generates a sale iPoserhttps://www.blogger.com/profile/12652523445821841027noreply@blogger.comtag:blogger.com,1999:blog-7169279.post-91823893062253469702010-09-09T12:35:09.778-06:002010-09-09T12:35:09.778-06:00At least that is how I see it.At least that is how I see it.Jedora Ruleshttps://www.blogger.com/profile/13703950176332987531noreply@blogger.comtag:blogger.com,1999:blog-7169279.post-9682746354416974302010-09-09T12:33:38.237-06:002010-09-09T12:33:38.237-06:00Dave, it is simple. Apple is throwing their weigh...Dave, it is simple. Apple is throwing their weight around. Apple has been selling the i-books (from MacMillan) for $13-$15 while Amazon has been selling them for around $10. Apple persuades MacMillan to force Amazon to increase the price to match Apple. Kindle consumers suffer the consequences.<br />How can MacMillan force Amazon to increase their prices? They say if you want our books, then Jedora Ruleshttps://www.blogger.com/profile/13703950176332987531noreply@blogger.comtag:blogger.com,1999:blog-7169279.post-44599774039082093012010-09-09T11:12:09.654-06:002010-09-09T11:12:09.654-06:00I don't get it. Could you explain a bit more? ...I don't get it. Could you explain a bit more? What exactly do you mean by: " ... Apple is being very strategic in its actions to maintain its market-leader position with the iPad. By persuading MacMillan to follow an agency model with Amazon ..."Dr. Tuftehttps://www.blogger.com/profile/17397586052171706438noreply@blogger.com