[Triumvark]

Prices float toward the marginal cost of production.

Saying that's heading in the wrong direction is like saying that we could make a better plane if we just had less gravity.

[JayWilmont]

Despite how poorly this guy describes price elasticity, I do think he has one decent point: that if the "customary" ebook price becomes $1, that is too low for most authors to make it. Based on just a gut feeling, I think the sweet spot would probably be $3-6 for ebooks.