Quote:
Originally Posted by NatCh
As you point out, e-book margins are pretty thin, but I don't know that they'll be that much thinner than p-book margins, from the author's standpoint anyway. So a lot of folks might be dissuaded if we the consumers expect the prices to be too much lower than the paper price. I guess that's my overall point. 
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Since eBooks effectively cut out the middle-men (i.e. publishers and retailers), they can be priced significantly lower than pBooks - with the authors and retailers making the same.
I don't believe that authors believe that they will make more off an eBook sale than a pBook sale. In the short term, that may be the case, but not in the long term. In a capitalistic system, prices tend to drop until they can drop no further. Since the cost to produce a copy of an eBook are effectively $0, we are just paying for the author's and retailer's profits.