am an Amazon Prime member and I never cease to be amazed at the value that I get for the $99 that I pay as a membership fee. In addition to free shipping, I get access to Amazon Media and Kindle books. In October 2017, I was joined by 85 million other Prime members who also felt as I did, and the open question is whether Amazon Prime is a loss leader for Amazon, intended to create benefits elsewhere or a value creator for Amazon. I use the user-value model that I created for Uber to value Amazon members and conclude that Amazon Prime creates $62.2 billion in value for the company. I confess I make lots of assumptions along the way, but you are welcome to disagree. Spreadsheet: http://www.stern.nyu.edu/~adamodar/pc… Blog Post:
Breaking down Amazon Prime
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