Philip: Amazon does lower prices when they come out in paperback, to match paperback prices. So $7.99 or so. My point is that they don't subsidize the older books, but do the new ones, thus flattening the consumer range of price for eBooks. My books are $7.99-$12.50 under this structure via Amazon.

In the future, Amazon says it'll be no higher than $9.99. So then you have a scenario where my publisher would keep the backlist at $7.99 and not drop it to the $5.99 if that is true, and the latest book would be $9.99. There's a chance publishers may even just bump the backlist up to $9.99, even though that'd be (a bad idea!).

Under Macmillan, a likely case would be my first two books being $5.99 ($2 cheaper than a paperback) and Sly Mongoose being somewhere between $9.99 and $14.99 (though we don't know where).