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Amazon was not selling all of their ebooks at a loss. Like many physical discount stores, Amazon used bestsellers as their loss leader to get customers in the door, so to speak. Amazon did the same thing with physical books when it was establishing a web presence.
I will not pay more than $9.99 for any ebook. Not when I can walk into a physical store and buy the new physical book for the same or less than for the current ebook price. I don't see the publishers pushing the Agency Model with physical books. And, so far, the ebook prices rarely reflect the paperback price. That tells me that the publishers are using agency pricing to prop up hardcover sales.
There are plenty of non-Agency Model authors out there for me to read.
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