The second scenario calls for the publisher to lower the cost of the product, but only minimally, to just lower than that of a print version. The publisher is still saving on print and distribution costs but the consumer is gaining buying power.  Those that find themselves keen on the idea of using digital readers frequently will benefit as they’ll be able to save some money in the long run. The new question becomes how publishers distinguish hardcover and paperback prices. In the digital world, there isn’t a difference. Once you download a new release, there is no point in re-releasing it. The closest thing that publishers could do is base the price on how much time has passed since the initial release. The overall price could drop $5 to $10 if you wait six to eight months. The demand in this scenario is overall below average while the price is elevated.

The third and most likely scenario factors in both the publishers' and consumers' concerns. Amazon has already broken ground on this option by offering all ebooks at a mere $9.99. With Apple yet to establish its own niche, Amazon has already braced for it by radically reducing reading cost over the past several years.  Ultimately this kind of price-cutting competition benefits the consumer. They can purchase a digital reader with a few books and instantly see real savings.  The demand for digital publishing remains steady while the price lowers and enters a state of instability. As competition develops, a price war could begin between distribution companies like Apple and Amazon. And the real winner in a price war is always the consumer.

Ultimately, the options the publishing industry has are limited. A pure market cannot accommodate the digital publishing industry to its fullest extent [it has no history to learn from]. As it stands now, the market is one-sided. Not only hasn't there been a true competitor, but the industry hasn't had time to stabilize over a five- or ten-year span.