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I suspect many publishers hesitate to lower their Amazon Kindle ebook prices (among other reasons) because they only get 35 percent of the sale through Amazon, so a $9.99 ebook gets the publisher $3.50 and Amazon gets the rest. $3.50 isn't too shabby for the publisher, but it's not huge either. So, publishers as businesses have a disincentive to price lower than $9.99 and face a temptation to price higher. Of course, if the market won't except it, then the price will be forced lower. I personally feel that Amazon is taking too big a cut on ebooks.
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