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Comment Re:Good news for BN? (Score 1) 218

But you apparently have not read anything I wrote, because I just said exactly how a low-cost retailer could hurt consumers. I kinda assumed that you would be smart enough to make the leap from "Nick is bitching about Amazon reducing consumer choice," to "Nick is arguing that monopoly's like Amazon's are dangerous because they reduce consumer choice."

Amazon refusing to sell one particular business's product is not a meaningful reduction in consumer choice. Amazon is not the sole seller of books, or of books online. They have no "effective monopoly" outside of their own Amazon marketplace - and even then others can compete against Amazon, by selling products on Amazon.

1. Prove it. Seriously. I'm making a legal case, under the Sherman Anti-Trust Act, so to actually prove this you'll have to read the United States Code, not an Economics Textbook. Good luck proving this one either way. As far as I can tell Amazon is the definition of a "gray area" when it comes to antitrust law.

Wiki blurb on Anti-Trust Act: "Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty of a felony [. . . ]"[13]

So has Amazon monopolized book sales? No, there are still retail bookstores who can continue to sell the books.

Is Amazon trying to monopolize online book sales? Not particularly - other competitors exist, and they're not trying to force a publisher to only sell through them. They are trying to get a better contract, but that's normal business negotiation.

The only way you can call Amazon a monopoly is by using a nonsensical definition that does not fall under the language of this act. (Hint: If your definition makes every business a monopoly, your use of the word monopoly becomes useless)

2. Irrelevant. Amazon is a marketplace. It has a monopoly on itself. If it's marketplace is large enough that it can make or break publishers then it can, by definition, engage in anti-competitive behavior under the terms of the law. And it does not have the legal right to do that, no matter what your economic textbooks say.

When Amazon isn't allowed to negotiate what it sells in its own online store, you've effectively taken over ownership of Amazon. Who are you giving that ownership to, and what are you planning to do to compensate Amazon's owners?

Do you know the publisher in question was accused of being a part of a price-fixing cartel with Apple? They were trying to keep book prices high, and they don't have the "legal right to do that".

Now I learn that if Amazon wants to make book pricers lower, they don't have the "legal right to do that", either.

What purpose are these laws serving?

Comment Re:Good news for BN? (Score 1) 218

Essentially their market power allows them to dictate price and the price they demand is well below what the publishers can sustain themselves (as they currently exist) at. This means that they cannot (and will not) give the same price to the competition. This happened with the independent and the chain bookstores as well, and it pretty much drove the vast majority of the independents out of business.

And no, as has been made pretty clear, the strong majority of customers won't look anywhere else besides Amazon. Being unavailable in Amazon is roughly equivalent to having Google search delist your website. Sure, you still exist, and a small number of die-hards have you in their bookmarks, but you're essentially a dead-man (site?) walking.

The publishers don't have a right to exist as they currently are. Book publishing has changed and their model built when book publishing had high upfront costs doesn't work so well in an age where you can toss an ebook on the internet for practically nothing.

And no, as has been made pretty clear, the strong majority of customers won't look anywhere else besides Amazon.

That's not a monopoly. Every single one of those customers have the ability to choose any other Internet retailer. It's as simple as typing a new address in the browser. What is Amazon going to do, hijack their computer with a script?

There's market power there, but that's legitimately earned.

So, effectively for the publishers, Amazon *is* the only game in town, regardless of legal definitions, and Amazon is playing the Walmart game. This might work well for consumers, unless they're looking for a certain quality of goods, in which case, the practice is deeply worrisome.

In summary: you want to veto the choice of consumers for cheaper goods, so that publishers can sell them books for a higher price.

Because if you didn't do this, then Amazon would use their market power to sell consumers cheaper books, which is harmful.

Expensive books protect consumers. Um, yay?

Comment Re:Good news for BN? (Score 0) 218

No "monopoly" is not defined that way, but monopoly power is. You in fact defined it that way an entire two posts ago:

"So in this scenario, they become lowest cost seller of everything? And this is harmful to customers, how?"

"Lowest cost seller of everything" is not a monopoly. Monopolies involve markets for specific goods. A monopoly on "everything" is impossible, because of the sheer number of goods and methods of distribution involved. If a company can figure out how to do that without use of government force - they deserve to be the "monopoly".

You also completely missed the point - which was that this so-called monopoly scenario ends up providing the lowest cost goods to the customers - maximizing value to them.

The rights of a monopolist are red herring. You do not the right to force IBM to sell you a computer that can run several different operating systems. You do not have the right to force Microsoft to sell you a computer with a browser that can access non-MS-approved websites. But it happened.

/facepalm

1. Amazon is not a monopolist.

2. Amazon doesn't own the Internet.

3. The only "monopoly" Amazon has is the right to sell things on Amazon. You seem to be suggesting that everyone has a right to sell things on Amazon on their own terms, and that Amazon isn't allowed to negotiated the terms of that business contract.

If that was true Hachette wouldn't be losing sales.

So did buggy whip manufacturers. That's not evidence of a problem or a monopoly situation. Think, for crying out loud.

A free market is not "status quo forever".

Comment Re:Indirect tax (Score 1) 462

Tesla isn't doing it because they decided to go after a different market with a car with a reasonable range.

Why did they go after a different market in the first place? Profit margins. What does that tell you about the profit margins of scaled down EVs?

Designing an EV from the ground up reduces cost.

It also increases costs, because you're starting from scratch and testing new methods/configurations. Care to break down the fixed and marginal costs of the two choices?

Comment Re:Good news for BN? (Score 0) 218

And this article is that fact. Consumers are hurt when they lose choices. Amazon took away the choice to have Hachette books delivered in a timely manner. Since nobody noticed for months your wonderful theory that online retail can't be monopolized was proven wrong.

Monopoly is not defined as "power to `hurt' customers" or "customer faces a reduced number of choices", so all the rest of your post is a red herring.

Hachette books does not have an innate right to use Amazon to sell their wares. If they don't like the level of service provided by Amazon, Amazon can do NOTHING to stop Hachette from creating an online store for their readers and shipping books by their choice of USPS, UPS, or FedEx. They could even sell their readers ebooks and not deal with the logistics of killing trees and moving them around.

Or if that's too much work for Hachette, there a myriad of other online retailers who will gladly work with them to sell their wares.

The very idea of "muscling" in the online realm is ridiculous. Amazon can take their ball and go home but they can't force anyone else to use their ball.

Comment Re:Tragedy of the commons (Score 1) 462

Humans aren't bacteria.

You seem to have this silly idea that finite resources will suddenly catastrophically run out - to the complete surprise of the people who have the most to profit from maintaining a regular supply of said resources.

Your scenario requires these foolish suppliers to fail to notice that they're running out of the very resources they're selling - and thus selling at a price/quantity in a way that fuels constant/growing demand (which is non-optimal for profit) - until a day comes when the natural resource tap suddenly switches off with no warning.

Comment Re:Good news for BN? (Score 2) 218

By selling at cost, becoming dominant in the field, and forcing other players to negotiate steep discounts with you. Now when you sell at cost it's below everyone else's cost. Amazon does the first. That's pretty much the entire point of Amazon. They also do the second, and even have the muscle to force shippers to change their business practices. OTOH, pretty much any big online retailer tries to do the same damn thing.

So in this scenario, they become lowest cost seller of everything? And this is harmful to customers, how?

If they decide they're a "monopoly" and jack up their prices - what do you think happens in the realm of online retail?

Let me get to the point. I don't think an "effective monopoly" is remotely possible in online sales, absent government intervention.

Is Amazon going to buy out all the search engines so people can't find cheaper retailers? How can Amazon jack up their prices, earn "monopoly profits", and keep competitors from popping up? If they continue to sell at cost to "kill" competitors, they're not harming customers.

Talking about "online tyrants" is ridiculous.

Comment Re:Indirect tax (Score 1) 462

If Tesla can make a full-sized sedan with a 265 mile range (85KWh battery) for $73,570 while averaging a 25% profit margin there's no reason why Fiat shouldn't be able to make a profit selling a much smaller car with a much smaller battery and a much smaller range.

That's far too naÃve. You're assuming the costs and profits are linear, or that there the demand scales the same.

If it's so easy - why isn't Tesla doing it?

Comment Re:What? (Score 1) 209

... but of course not in the somewhat silly sense that every mutation would happen exactly the same.

Thus, that evolutionary path is unrepeatable and unpredictable. It's not silly to notice how random mutation interacts with evolutionary theory.

Comment Re:What? (Score 2) 209

Because there are multiple paths to the same result, "selecting for the same result" is not guaranteed to follow a specific path.

That is, if evolution is driven by random mutation, where the selection of a particular path is a random result.

Comment Re:Woe to the archeologists (Score 1) 440

THAT A LOT OF FOOD IS WASTED DAILY. Like, A LOT. Perfectly good food gets destroyed to artificially inflate prices ALL THE TIME.

Food is cheap. "artificially inflate" sounds like conspiracy thinking, which isn't necessary to explain waste - there's a cost to using materials efficiently, so sometimes we don't pay the cost to go beyond 70, 50, or 30 percent efficiency due to diminishing returns.

In this case, potentially contaminated food wasn't worth the risk. In the US, the prime area to "give it away", there's no problem of people starving to death. Other parts of the world where it might do good are in other parts of the world - shipping the food adds costs - and again, risk of it being bad food, not "perfectly good food".

This really is the dark ages because we have a lot of the world's problems (if not all) perfectly solveable, but very little is done about it.

You utopians need to pay more attention to the failed utopians from the last century. Life's problems are not that easy, because people are complicated, and the systems we live in aren't simple either.

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