The economics of used books

July 28, 2005

Very interesting article from the NY Times today about Amazon and used books. Many assume that Amazon’s ample selection of used books represents a grave threat to authors and publishers, but some economists who looked into the issue found evidence that just the opposite is true. The key point: “When used books are substituted for new ones, the seller faces competition from the secondhand market, reducing the price it can set for new books. But there’s another effect: the presence of a market for used books makes consumers more willing to buy new books, because they can easily dispose of them later.” Read the whole article here.

created The Millions and is its publisher. He and his family live in New Jersey.

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