Die Buchpreisbindung: Evergreen oder Auslaufmodell?

This paper critically examines Germany’s fixed book price law and its relevance in the digital age. The law mandates fixed prices for both physical and electronic books to support title diversity and local bookstores. We explore both policy goals from an economics standpoint. The first part of the analysis explores whether fixed prices truly increase the variety of available books. While the law theoretically allows publishers to subsidize niche titles by charging more for bestsellers, evidence suggests that title diversity has not significantly improved. Additionally, the law has a regressive impact, as it raises bestseller prices, disproportionately affecting lower-income consumers. The second part of the economic analysis examines the law’s goal of sustaining local bookstores. With the rise of online platforms and digitalization, the retail landscape is shifting, increasing the availability of books (physical and digital copies) without relying on fixed prices. We conclude that the fixed book price law is no longer effective in today’s evolving market, where online platforms and digital distribution contribute better to the achievement of both policy goals.