Blog Entry Week 1

Okay, for my entry regarding the readings from week 1, I would like to center my thoughts around a concept from the blog post titled, 'Some Differences Between Ebooks, Enhanced Ebooks, And Apps' by Digital Book World.

The excerpt that most stood out to me said, "Surprisingly, even though apps can do more, they tend to sell for less in the marketplace. That's because historically, ebooks are converted books, and people expect to pay a certain price for literary work. Apps come from an internet software heritage, and many people are used to downloading software for free."

This is such an interesting point, in my opinion.

Two weeks ago, I was visiting my grandfather in southern France. He is one of the smartest people I've even met, and was, at one point, a professor of economics. While we were visiting him, we had an in-depth discussion about who sets the exchange rate for the various payment methods across countries.

He told me that no one regulates and sets an overall price. But banks just set what they think they can get for it, and if their competitors are selling one currency for lower than they are, they are forced to lower their rate. It was another interesting concept to me.

It ties in with the reading because of the idea that people set prices for things solely based on what they think they can get for it. It feels very vague, honestly. It feels almost like a mind game. The fact that apps are far more advanced, functionally speaking, yet sell for much lower than a standard ebook is baffling to me. If only people could look at this factually, they would understand that they are not getting a good deal. Apps should be able to charge just as much, if not much more than standard ebooks. It would just take a shift in mindset. In culture.

The idea that the euro is more valuable than the U.S. dollar is merely because people perceive that is so due to U.S. debt, the amount of dollars in the market and probably several more factors. And as a result, people are willing to get way less out of their dollar because of the common mindset of the masses.

Is this a good thing? Should people build campaigns and actively seek to shift mindsets? And in some areas, they probably are.

So far, in our class, we have reviewed and tested several different types of enhanced ebooks. Some are very advanced and some seem very basic. And yet, public perception is going to put the price tag on these apps. Even if it is morally or logically wrong, our traditions and expectations will determine what we are willing to pay. And that is so mind-boggling to me I almost can't believe it.

The altruistic side of me wants quality apps to get a fair payment for their apps in terms of their quality; and yet, I have to sit with the reality that far less impressive ebooks will continue to make 2-3 times more money, merely because of our expectations. And this reality makes me question our economy and society at large.

Dumbfounded,
Peter Brown