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I've found that Amazon has been pretty consistent in saying that the $9.95 is for New York Times best sellers and they don't make money on these anyway. These are the books that the big box stores like Walmart sell for reduced prices. It's the publishers that are have been putting into the public's mind that this is the Amazon price point.
If they are so concerned about Amazon setting the prices what is stopping them from selling direct to the public at the wholesale price that Amazon is buying them? Sell them without DRM and Amazon would be out of business. Instead they lose all credibility by trying to sell at the same price as hard cover books.
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