Internet exchanges for used books: An empirical analysis of product cannibalization and welfare impact

Information systems and the Internet have facilitated the creation of used–product markets that feature a dramatically wider selection, lower search costs, and lower prices than their brick–and–mortar counterparts do. The increased viability of these used–product markets has caused concern among content creators and distributors, notably the Association of American Publishers and Author's Guild, who believe that used–product markets will significantly cannibalize new product sales.