Inside a BOOK auction

The podcast explores the economics of the book publishing industry through the lens of Planet Money's own book deal. It begins with literary agents approaching Planet Money about writing a book, leading to a proposal and subsequent auction. The concentration of the publishing industry into five major conglomerates is highlighted, increasing the pressure to prioritize profit. Literary agent, Tom Mayer, describes the auction process, including round-robin and one-round best bid formats, ultimately using a two-round best bid "wedding cake" auction. The final decision came down to Norton, offering educational courseware potential, versus a larger publisher with more money upfront.