The publishers are taking a far greater proportion of profits leaving authors a far less proportion of the profits with e-books compared with hardcopy books. A

The publishers are taking a far greater proportion of profits leaving authors a far less proportion of the profits with e-books compared with hardcopy books. Amazon is attempting to increase the author's share of profits on e-books while reducing the publisher's share. This is what Krugman is criticizing. From the article linked below: $27.99 hardcover generates $5.67 profit to publisher and $4.20 royalty to author $14.99 agency priced e-book generates $7.87 profit to publisher and $2.62 royalty to author. Hardcopy: $9.87 total profit: approx 57.8% to publisher e-book: $10.49 total profit: 75% to publisher https://web.archive.org/web/20130713080118/http://aardvarknow.us/2013/06/04/e-books-and-profitability-what-weve-always-said-and-publishers-have-always-denied/ https://web.archive.org/web/20130713080118/http://aardvarkno...