What Should Your E-Book Cost?

Most authors (including me) are not experts in economics. Many of them might have a vague idea that if their book was priced high, they’d make more money. But this ignores the relationship between price and quantity sold. The author should be seeking to maximize income over all, not income per book sold.

Caveat: I’m no economist, so this is my best guess at the economics of e-book pricing. The thousands of economists who read my blog should comment and correct any errors I make.

The relationshi...