I read it. So it seems like this is a counterexample showing that the Coase conjecture doesn't hold in the ebook market.

I mean, with any theoretical modeling, you have to assume that the market actually fits the theory's requirements, right? From what I can gather just reading about it, the market the Coase conjecture model requires is one with a fixed set of consumers, a homogeneous durable good, and a monopolistic seller. But the real ebook market has a constant influx of new consumers, substitute content, complex contract structures, and, crucially, promotional events and coupons.

So in the end, I think we have to understand it as something that only holds under very specific conditions, not something that maps neatly onto real world cases.

That said, I'm curious. If you were to model the ebook market in general, what would the high impact variables be, and which ones would have relatively little influence?

But what I don't get is, are there even that many markets where the Coase conjecture actually holds? I'm not so sure.

I mean, you take reality and you turn it into a theoretical model. So my question is, are there really that many markets out there that fit the Coase conjecture in the first place? Sometimes when I read stuff about economics, it feels like people slice up the variable modeling to only look at what they want to see, and only in the regions they want to see, and then they claim it's universal. Of course, counterexamples keep popping up. And that's why it always feels so shaky.