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Originally Posted by Sil_liS
I didn't say that the publishers were worried about Amazon undercutting mass market paperback (MMPB) prices, I mentioned paperbacks (PB not MMPB) as a paper alternative to hardcovers.
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The books the publishers were worried about were hardcover editions for which there were no MMPB/Trade PB editions released yet. One of the reasons why the publishers were especially upset with Amazon's ebook pricing was that Amazon started getting a lot of 1-star reviews by people who didn't buy the ebook whenever an ebook sold for more than $10. This meant that Amazon was setting an upper limit expectation for ebook prices that limited publishers' ability to set ebook prices at or near parity to hardcover prices when only the hardcover and ebooks were available.