Econ 101: Capital vs. Consumable
From Have we seen the end of the $9.99 eBook? at The Unofficial Apple Weblog : Amazon currently charges $9.99 for most books, which, according to AppleInsider, means that Amazon is losing $4.50 per book to keep its leadership position in the eBook market and keep Kindles selling. This strategy is similar to the loss-leader marketing popularized by Gillette who sold razors at a loss in the hopes of more than making up for it in the sales of blades.
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Econ 101: Capital vs. Consumable