Yes, but B&N engage in unfair business practices. Like opening up a bunch of stores in an area, selling books at zero profit for a year until the independents go out of business (they can't compete on the volume or volume pricing), then close down all but one store where they bring the prices back up to normal.
B&N have also engaged in intimidation of employees trying to unionize.
What's worse, however, is that they're all part of the same huge media conglomerates as the publishers. Gradually, access to independently published works will become so hard as to be unavailable to the bulk of people.
Reducing it to an argument of price/competition is a short-sighted view of the Market economy. Large corporations will always win in the price domain when they have to. When they don't have to ... well, those prices won't stay low. The classic view of the Market correcting things (i.e., if they jack up the prices, indies will bust in on their business) just doesn't hold up to examination -- look what happens when someone threatens, say, the recording industry or the motion picture industry. If you read slashdot, you've seen these stories...
