After winning a high-stakes standoff against Amazon last year, publishers are now setting the prices that retailers can charge for their e-books.

At first blush, one might assume that such price-fixing would result in higher prices. But the evidence from more than a dozen European countries, where laws have long prohibited selling both print and electronic books below a set price, clearly shows that publisher-mandated pricing saves consumers money. It also fosters a more lively and competitive book industry, with far more books published and many more independent bookstores open than in countries where big retailers control pricing. Continue reading