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To: Publius6961
So if you a private utility...say a water company...and you're the ONLY water company serving 10,000 people, you can raise the price to any level you choose? $50,000/gallon?

Or, should you be able to just shut the water off and close for a month?

This is the classic argument.

However, private utilities most often have been granted exclusive franchise and all the obligations that come with that.

Now, a real-life scenario: Gasoline.

Should it be legal for oil companies to collude on the price of a gallon of gas...and raise that to $10/gal overnight...nationwide...and without notice?

I answer: YES!

3 posted on 04/19/2012 7:47:53 PM PDT by Mariner (War Criminal #18)
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To: Mariner

The problem with what Apple and the publishers did is that they did away with the long standing idea of wholesale pricing.

Amazon was paying a wholesale price for e-books and charging what they wanted to charge. i.e. They were paying a set price for the books and charging whatever price they wished. In some cases, it was below the wholesale price and they were losing money in an attempt to gain market share.

Apple worked with the publishers to make sure that there was a model where they all made money and consumers couldn’t get the product at a discount. Instead of the traditional practice of selling at a wholesale price and allowing retailers (Apple, Amazon, etc.) to set the retail price, the publishers set the retail price and gave retailers a set percentage of the cover.

They were colluding to shut out a lower-cost competitor at the expense of consumers.

You can make the argument that Amazon was trying to build a monopoly by driving out others in the e-book market.

The argument should be about whether publishers have a right to set a price and refuse to allow retailers to discount their products.

We already see it with other Apple products — try to get an iPad at a discount...


7 posted on 04/19/2012 8:30:38 PM PDT by MediaMole
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To: Mariner
What a mishmash!
A classic example of why I never respond to the logically challenged who begin a response with the words, "So if..."
18 posted on 04/19/2012 11:29:21 PM PDT by Publius6961 ("It's easy to make promises you can't keep" - B.H.Obama Feb 23, 2012)
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