Monday, February 21, 2011

The Elasticity of Demand for Climatopolis

This Amazon Link  is telling me that my Climatopolis book is now a "bargain book".  This is a bargain book and quantities are limited. Bargain books are new but could include a small mark from the publisher and an price sticker identifying them as such.  Why is a for profit firm such as Amazon offering a 60% discount?  When I was a student, we were taught that those with market power will raise the price for goods whose demand is inelastic and for which there are few good substitutes.  So, I guess this means that the opposite is true for my Climatopolis.   You can purchase a hardcover for $10.78 or the Kindle version for $12.99.

In contrast, Ed Glaeser's Triumph is priced at $14.99 on Kindle and $17.97 for a hardcover.  This says to me that there are readers out there willing to pay the big bucks for his wisdom.

Now what can I do to boost demand for my "classic"?   How did I get sent to the "bargain bin"?  

I am confident that like an old poet that my work will be recognized in the future for being "ahead of its time".  I hope that my publisher isn't trying to liquidate its inventories.  Similar to Hotelling's Rule, I am confident that the price of this exhaustible good (the first edition of my book) will rise at the rate of interest.   Perhaps the declining price of Climatopolis indicates that Krugman was right and that we are entering a period of steep deflation?