> Most people aren't paying for the extra functionality of ebooks though. Most people are still buying physical books That's not what I'm talking about though.

> Most people aren't paying for the extra functionality of ebooks though. Most people are still buying physical books That's not what I'm talking about though. I'm talking about this: if you set the price of ebooks at some small margin above the price to produce plus the price to license the content, you sell at price $X. If you set the price where people are willing to buy it due to increased convenience for them, you sell at price $Y. If $Y > $X, why not sell at $Y? Of course, this isn't a direct relationship, since different people have different $Y prices, but there's a price curve there, and one ought to sell their ebooks on the curve to maximize the (number of sales) * $Y. > Also, your reasoning for selling a book at a higher price is not correlated to supply vs. demand. Maybe supply vs demand was the wrong choice of words, but that shouldn't detract from the point.