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I don't know the exact economics of the industry. What I do know is that current paperback prices are economically viable for books that are currently in paperback.
That gives me a ceiling. If the book's in paperback I won't pay more than paperback prices. ( I personally think ebooks should be somewhat cheaper - but I know the wastage involved in the mass market and the ability to sidestep that should more than cover the cost of creating e-versions. )
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