Availability, price, need to share, illustrations
Whether I go paper or Kindle depends on the above considerations.
1) some books are not available on Kindle--I read them in paper.
2) on rare occasion I have seen Kindle books for 9.99 and new paperbacks for less (presumably the Kindle price was set while the book was only available in hardback and hasn't "caught up" to a recent switch to paper. Come to think of it, I haven't bought any of these (have *lots* of unread books, both e and p) but if I did, I'd probably go paper. On the other hand, a book that is (legally) available free for the Kindle gets read on the Kindle--I don't see any reason to pay for the object when I can get the information for free.
3) if I need to share a book with my husband (recent purchase of "House Buying for Dummies" for example) I get in in paper. My husband doesn't have a Kindle of his own, and I have a hard time giving mine up for even a few hours at a time. :-)
4) if a book has important illustrations that won't show up well on the Kindle (frequently a judgement call without buying the Kindle book), I go with paper.
Another consideration that hasn't come up in the past but may well do so in the future--DRM is an issue, obviously. It seems to bother me less if I want a particular book, than if I want, say, a book in a particular genre but haven't settled on one yet, in which case I consult sites that sell non-DRMed books (or have free books) first.
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