[jkartchner]

Consumers don't think in terms of positive value, if they consider value at all. They consider negative value. For example, consider why skim milk costs LESS than whole milk, even though skim milk is more expensive to produce. People feel they're not getting the fat in their milk, so they should pay less, not more. Same thing here. They're not getting a physical book.

What's more, it costs a publisher far less to produce and distribute an ebook. So there is legit no good explanation that a consumer will accept for a higher priced ebook.

[0815test]

> consider why skim milk costs LESS than whole milk, even though skim milk is more expensive to produce. ...

Isn't skim milk a side-product of making cream and butter, which is the "fat" part you mention? I understand your point, and the consumer side is definitely a factor in how jointly-made products are priced, but it isn't exactly irrational for it to cost less, even though it's made using whole milk as a feedstock.

[jkartchner]

No, I don't think skim milk is a byproduct of anything. With whole milk you can get whey and cheese. You can get butter and buttermilk. But skim milk has to be intentionally done. Im pretty sure.