I am *astonished* that a business would ever put something out like that. That kind of blew me away.

Really? I feel like that kind of junior-high level hissy fit is par for the course when tech companies argue in public.

I have been thinking a lot about this eBook war. It's interesting.

My conclusion is this: the agency model is the best distribution model, but the PUBLISHERS will hopefully get smarter about setting prices. eBooks should be cheaper than print books, for psychological reasons if nothing else, and if the publishers have control of pricing then it's up to them to realize that.

There are other economics issues with pricing models for the music, video, AND book industry that I hope the digital revolution will slowly improve. Basically, it is my belief that pricing should be more author-individualized. Right now, if you're a brand new author in a non-genre field, your book gets priced at basically the same cost as a Dan Brown book, which essentially means it costs MORE since so many retailers discount bestsellers. This just leads to even more people buying Dan Brown instead of the new unknown author. That's fine by the publishers, but it sucks for authors.

Less popular books should cost less, so as to increase demand. That's economics.

One of the friends I work with recently published a book. It's good, but it's not popular. If he could quadruple his sales numbers by halving his price, I'm sure he would. And I really expect that would happen. I can't imagine spending $26 on a book like his without knowing the author. In fact, the Kindle version was $14 when I bought it, and I wouldn't have bought it at that price point either. I have no incentive to try somebody completely new to the scene at that price point.

But the second his book hits the "On Sale" table at B&N, I might well pick it up. I buy a lot of random books from that table. They're less risk.

Ebook pricing should follow that model, the OPPOSITE of what I see in bookstores. Popular books should cost $20+. Lesser known books should cost $5-$10.

Will the agency model bring us that? I hope so. It makes the most sense to me. But it requires publishers to think it will make them more money in the long run. I believe it would. But what do I know?

eBooks should be cheaper than print books, for psychological reasons if nothing else, and if the publishers have control of pricing then it's up to them to realize that.

eBooks need to be cheaper than print books for the simple reason that they require a $250+ hardware investment on top of the price of the book.

If I buy a $25 hardback, I pay my $25 and then I read the book. In order to read the same book for $15 on a Kindle, I need to buy a Kindle first. (Yes, I have the Kindle app on my phone. I have tried to read books that way and ALWAYS wound up just buying the print version instead. The screen is simply not big enough.)

Also, you can resell the hardback.

I think eBook readers are still cost too much to really take off. If they can hit $150 or the magic $100, then I think it'll really get going. Maybe the prices are still distorted because it's still a fairly niche market. People who spend $250-$500 for a reader, are more likely to still buy e-books even when the price isn't that great.

eBooks need to be cheaper than print books for the simple reason that they require a $250+ hardware investment on top of the price of the book.

True. Though plenty of people seem to have no trouble reading on their iPhones, or so I hear, though I certainly agree with you about the screen size myself. I use the Kindle app fairly regularly, but only because I already have a Kindle and being able to share the books between them is useful for the rare situation I can't or don't want to bring my Kindle.

The resale issue is something that will have to be tackled eventually. Honestly, though, it might not. Used CD stores are a lot rarer than they used to be, and used book stores might, sadly, go the same route. That's one reason why I think less popular books (like the kind that eventually end up in used book stores) should cost less to begin with.

It takes a lot of work to resell books for any reasonable price anyway. Take it to a used bookstore and the amount you'll get for it is generally laughable. Sell it on half.com and it's better, but then you have to go through all the shipping work. Hassle.

Maybe the prices are still distorted because it's still a fairly niche market. People who spend $250-$500 for a reader, are more likely to still buy e-books even when the price isn't that great.

I agree with this. It's one of the reasons Amazon was artificially setting the price of books so low - they could argue that the savings would pay for the Kindle fairly quickly for serious readers. I'm pretty sure I've already paid for BOTH of my Kindles in saved money, which will become less easy to argue if the book prices become more expensive.

eBooks need to be cheaper than print books for the simple reason that they require a $250+ hardware investment on top of the price of the book.

We discount eBook textbooks for the simple reason that there are no printing or delivery costs. But we don't have the multiple format (hardback, etc.) issue.

I haven't bought any books for my kindle yet, but I wasn't a big book buyer to start with. I pretty much only shell out for friend's books, and buy whatever is at the good will. I am working my was through all of the Louisa May Alcott on Project Guttenberg right now.

Some libraries do offer free ebooks (that expire after 3 weeks or so), but I don't know how compatible the formats are with the various DRM-ed e-readers on the market. (My MiL is in charge of buying books for her library system and it's a constant struggle to find a format that works for library rentals AND will work on customers' devices. Her librarians generally advise people to buy netbooks instead of dedicated ereaders for library books. Audiobooks have the same issue.)

Sophia, if you're looking for another Victorian novelist after Alcott, may I suggest Margaret Oliphant?

I found one of Mrs. Oliphant's (as she was also known) novels, Hester, at a book fair for $3. She's definitely in the realist category. Think Anthony Trollope, but from a woman's point of view. Not that Oliphant is Trollope's equal, but she's a perceptive author and an interesting read. And Emma Ashton may be one of the most underrated comic characters in Victorian literature.