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"I don’t mind one bit paying a FAIR price. But I am not a complete fool and willing to pay 20 dollars for a book that is available on the high street for 10 dollars."
This, to me, is the bottom line. The publishers are *crazy* if they think people will want to pay more money when they don't have to. If the costs to produce an ebook are really that much higher, then they need to economize and find cheaper ways (e.g. cutting out the middleman, requesting authors to submit manuscripts in plain text, whatever). They need to develop methods which will allow them to price their product in a competitive way.
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