This is pure speculation, but I wonder if production cost is the driving factor. Rather, I think it is a question of what a potential buyer is willing to pay. I

This is pure speculation, but I wonder if production cost is the driving factor. Rather, I think it is a question of what a potential buyer is willing to pay. If a person with a Kindle is looking to read, say, Atlas Shrugged ($19 Kindle, $10 Paperback) I don't think they are going to buy the paperback just to save money. They are probably willing to eat the extra $9 for the immediate gratification. Amazon knows that, so they'll charge more. Also, its interesting to note (from an unscientific random survey) that they are charging less for the Kindle Edition when it comes to bestsellers (which are probably in hardback). I wonder if this is in an effort to hook potential buyers and then increase margins when Kindle owners buy older titles?