On a typical hardcover, the publisher sets a suggested retail price.

As a rule, publishers set a book's list price at five times the cost of production, printing and royalties.

In such an agency-model, publishers set prices rather than sellers.

But the publisher set modest sales goals for the hardcover, starting with an 11,700-copy print run.

So, why are publishers setting e-book list prices so high?

The publisher has set a $700,000 minimum for bids on the paperback rights.

Google Editions will let publishers set the price of their books, he said, and will accept the agency model.

I suppose that is the precise reason why the profiteering publishers and retailers set the prices as they do.

If the publishers set too high a price the consumer will head towards the pirates.

But it will deal a blow to the agreement, which allows publishers to set a minimum price for most books.