chandanlog(3C): How cheap can books or windows be?

17 Aug 2004 How cheap can books or windows be?

Microsoft is in news again in the local papers for something other than virus and worms. They are to release a cheap version of their software targeted at few developing countries. I am trying to calculate how cheap they can get.

The concept of cheaper versions of products is nothing new. Take book publishing for an example. "The C Programming Language" by Brian W Kernighan and Dennis M Ritchie is priced at about 40$ (=Rs.1900) on Amazon. That is ridiculously high compared to about Rs.70 (=1 dollar and 50 cents) that you can get at TATA Book House at IISc Bangalore, where he gives you 20-25% discount on any tech book.

Why are books in India priced so low? (about 1/30th of US price?). I don't know what an economist might answer. But what is obvious is that if you photocopy that Kernighan and Ritchie book, it might cost you approximately the same price or more (about Rs.100). If you try to sell the book at Rs.1900, no student would buy it. Infact even the tuition fees may not be that high. They would just borrow the book from library, photocopy it and use it (or photocopy a photocopied version..) So all western publishers bring out Eastern Economy Editions (which are hilariously cheap by American prices). You might get an used book at Rs.20-30 (= 40 cents). So book piracy does not exist in India, when you get the original and better copy at the same price it takes to duplicate it. You may actually find people smuggling books to US from here. [There would be a tag on the books saying their sale outside India is prohibited, but I guess gifting them is OK]

While the Eastern Economy Editions books don't differ from their costlier homeland editions (except the price tag), the cheap windows XP edition seems to be substantially crippled and still costs a lot. There is no way small businesses like Internet cafes you see in Sarawathipuram, would want to buy it.

I was surprised to see Open Office in one such cafe in the neighborhood (where I get my documents printed at one Rupee per page). Anti-piracy measures by local police would make pirating Windows difficult. That coupled with highly priced Windows would certainly help people adopt Linux and Open Office.

Now something totally different, but about low prices: To see how low prices are in India, see this news item in Rediff

Link | Comments [4]

Comments:

The price in US is more because most of it goes towards funding the war on Iraq. Also Bush does not have a low IQ. Otherwise how could he have fooled a nation into believing that Iraq had WMDs. He is one of America's most shrewd and intelligent presidents. He got Osama to blast WTC so that his friends made money at the stock markets. He got Americans invade Iraq so that his friends can make money with Iraq Oil.

Posted by Dr.Ekonomist on August 17, 2004 at 08:36 PM PDT #

The government in India subsidises computer books, which is why _all_ book shops are required to give you the 25% discount. Most will not tell you about it unless you ask.

Posted by Philip Tellis on August 18, 2004 at 12:12 PM PDT #

I am sure there is no subsidy on Kernighan and Ritchie book or anything I have recently purchased. Text books printed by the government may be subsidised or even give free to poor students (I remember they gave poor students free books for some time when I was in School, but took them back at the end of the year. You also had to produce a certificate that your parents earned very less). Books published by National Book Trust are also very cheap, but they are typically reserved for award winning literary works, by famous writers in Indian languages. In my library I have some really old green and red covered UK technical books with a white border saying they were subsidised for Commonwealth by UK government. Also in large numbers are really old Soviet technical books (mostly physics) which were also heavily subsidised and priced like Rs.2 to Rs.10) (and they smell propaganda). But dates on them mostly would be 1980 or around! You can no longer find them on Avenue road or TATA Book House. See some historical references about technical book promotion in India.

BTW, not just books, almost anything in India is generally cheaper compared to US (except I guess room rental at a star hotel or fees of an International school). I pay only Rs.25 (about 50 cents) for good buffet lunch in the Sun cafeteria compared to mostly tasteless food in the Menlopark cafeteria which might cost 5 to 10 dollars.

Posted by Chandan on August 19, 2004 at 06:26 AM PDT #

_All_ computer books printed and sold in India, but _any_ publisher has a discount on it. You _must_ ask the bookseller for the discount or he will not give it to you.

Posted by Philip Tellis on October 17, 2004 at 09:59 AM PDT #