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While there have been some good explanations here, I can see them maybe justifying a price of $3 or $4 tops. Most of the infrastructure already exists so the incremental cost is tiny. Further, there is another flaw with an ebook being closer to a movie rental than a hardcover book purchase. When you buy an ebook you for the most part cannot share it like you can with a real book - thus I look at it as closer to a rental than a purchse. I can't give it to my neighbor and then my son when done with it, with a few exceptions. Thus, I still think the price way too high.
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