If Publishers Can't Cover Their Costs With $10 Ebooks, Then They Deserve To Go Out Of Business

From the you-don't-price-based-on-your-bloated-infrastructure dept. With the legal dispute over ebook pricing going on, one thing we've heard over and over again from the traditional publishing industry and their supporters is that higher prices for ebooks make sense because of all of the "costs" that the publishers have to cover. This is a fundamental error in how pricing (and economics) works. It reminds me of the MPAA folks who demand to know the business model for making $200 million movies. Years ago, someone who understood these things taught me why cost-based pricing will always get you into trouble.