I think that publishers are missing a bet when they don't price ebooks on out-of-print titles to compete with used paper book prices. They don't have to go down to $1 to compete with the bargain bins, but going to $2.99 or $3.99 would compete very well with musty paperbacks.
The bargain priced ebook may not bring much profit to the publisher, but it's certainly more than a used paper book provides, which is nothing.
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