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Ebooks are TERRIBLE for study. You have to be in front of a computer to study, it is hard to highlight and annotate, it is a strain on the eyes, and it is not as easily portable as people think. I had to resort to loading them on my iPhone but that became a problem when I realized there's really very little out there that allows you to bookmark PDF's and I ended up scrolling through dozens of pages to get back at where I was.
I suggested to my university that they invest on subsidizing a good PDF reader, even if it's the Kindle DX. I have yet to hear from them.
The funniest part to me was that they cited "inflation" as the reason why they moved to eBooks. I think that's silly, since inflation affects ALL prices, not just conventional or physical ones.
The truth is that cell networks are incredibly expensive to expand and maintain, and even though cell companies are gobbling up profits, something that has become pretty much a necessity is not that expensive. We enjoy a great deal of consumer surplus since people would pay more than what we pay now for cell service. In fact, if it cost the average citizen $300 a month to have a cell phone, many people (including myself) would still have it. Then again, land lines wouldn't be extinct.
This gets me to thinking, if MS's software is as essential to business as oil is, does it share its inelasticity? Part of the problem is that Microsoft isn't always selling to consumers, but to a manufacturer's input in the form of OEM installs. That manufacturer's output is definitely substitutable and shows a high degree of elasticity, which is probably why Dell is trying out Ubuntu installs in some of its laptops.
Remember, there's very few things out there that don't have a substitution (like oil, for example), so the elasticity of the demand prevents firms from raising their prices at their own will.