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I don't understand the publisher's argument. Yes, it cuts into their profits, but people are still buying hardback books. Like someone else mentioned, hardbacks are aimed at recouping the cost of production. This wouldn't change. Offering an e-book for the price of a paperback would still be bringing in money (would actually increase profits slightly, as paperback books will still sell).
It actually puts them in a better situation in the best case, in the worst it keeps them abuot where they are now.
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