What if you could sell something and price it based on its popularity? The ultimate matching of demand and supply. Economists should study Amie Street.
Kudos to the folks at Amazon for investing in one of the hottest music websites.
The key to Amie Street isn't just the indy music available on the site, but the so-called REC system.
"The REC system drives the site's music discovery process. The price of a song is determined by how many times it is purchased, and Amie Street pays customers for discovering and recommending great music. For example, if a user "RECs" a song when it costs 0 cents, and the song grows to 98 cents, the user receives 98 cents for RECing that song." Will Amazon start selling books by indy publishers and writers based on the REC system. Time will tell.