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Supply and demand theories don't fit with content like ebooks (or music) too well because publisher basically have a monopoly on their own titles. It's not like somebody could compete by selling cheaper harry potter books. So with supply effectively out of the equation, it seems logical for CEO's to just set price according to demand, like Penguin seems to do. The demand for ebooks is basically the same as for paperbooks. So let's just set the price at the same level and make even more money.
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