One of the perennial myths you meet in the ebook debate runs along the lines, 'Given that you don't have expensive paper and distribution costs for ebooks, why aren't they cheaper?'

As we've discussed here before... they are cheaper. But it's not because they're cheaper to develop than printed books. They're not. Don't take my word for it. <a href="http://michaelhyatt.com/why-do-ebooks-cost-so-much.html" target="_blank">Here's a very detailed description of the issue from a professional</a>, Michael Hyatt, chairman of Thomas Nelson.

Hyatt details the real cost of print and distribution -- 12 % -- as well as the new costs of digital. And he points out the substantial costs involved which don't change. He concludes...
<blockquote>So far in our experience at Thomas Nelson, the elimination of manufacturing and distribution costs are being offset by retail price reductions and the three additional costs I have outlined. The good news is that we are making about the same margins, regardless of whether we sell the book in physical form or digital.

As a result, I don’t expect eBook retail prices to come down any more. If they do, then publishers will have to figure out how to make it work. But for right now, I think the pricing is fair, based on the associated costs.</blockquote>
I imagine most publishers would be content to be in the same situation if they can manage it right now.