I don't have a limit for a good hardcover. I collect them, some antique, with handwritten notes and dedications. If my house caught fire, they'd be my first non-living save, after my laptop and backup drive.
For recreational fiction, if it's a new release I'm dying to read, I don't have a limit. I usually wouldn't buy something that important to me in an ebook, though. If I like something that much, I want it on my bookshelf.
For recreational, throw-away fiction, I'm cool with spending up to $8, or, as WorldWalker says, about 25% below what I'll pay for a pbook.
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