[nikgregory]

Publishers are actually starting to format their ebooks, which yes will make it cost more than a paperback while ebooks remain a secondary release. Not only are formatters having to learn how to correctly format for multiple devices, but they're also having to deal with changeable formats and font sizes.

So yes, its going to cost more when formatted properly over a read-as-is format where it only needs to be formatted properly to fit the page.

ebooks if they were to be released like a book would only lose 20% of the face price of the book if companies like Amazon are willing to pass up the distributor costs and the publishers are truly not needing the publishing costs.

However 40% of book prices belong to the retailer. Between 10-15% belong to the Author for writing the book. The remaining 25-30% belong to the publisher to pay all those pesky inconveniences like editors and proof readers, etc. that actually make books readable to millions and not wholly illiterate dribble.

Assuming ebooks remain nothing but a parasite on the industry, you might assume a 10-20% discount off of face price unless the retailer offers discounts, which is what a lot of big booksellers do like Chapters/Indigo/Cole here in Canada.

[Tichy]

"which yes will make it cost more than a paperback while ebooks remain a secondary release"

You mean because paperbacks use the formatting from the hardcover edition, so their formatting comes for free?

I am still not convinced that your maths is really set in stone. For example, does the retailer still need to get 40%? Editors and proof readers are the same for ebooks as for paperbacks, hopefully.

How hard is the formatting of an ebook, what does it entail? I don't think they can just add new paragraphs? Couldn't the process be automated (LateX seems to be doing quite well with automated layout?

[nikgregory]

Actually Latex does a pretty crappy job routinely producing widows and orphans. The only way to change this seems to screw up the pagebreaking.

When was the last time you saw a widow or orphan in a book? I'll bet never for one from a major printer.

There are many things done in books to hugely improve readability that all have to be re-learnt and redone.

Also, yes paperbacks can use the same formatting as the hardcover if the page proportions are the same. Just an FYI hardcovers usually have larger fonts and the page can sometimes simply be scaled down without screwing anything up. So yes, sometimes it is free.