Typically when competition is created in the market prices tend to decrease, but in this case Amazon had such a stranglehold on the market that monopolistic forces were at play. In a strange move Apple's introduction of the iPad increases eBook prices. I suspect this will only be a temporary effect until Apple begins to also squeeze the publishers to lower costs.
Amazon and publisher Macmillan finalized their agreement for higher-priced e-books over the weekend. The deal is expected to serve as a template for other publishers, and the new prices should take effect in March, when Apple's iPad goes on sale.
[From AppleInsider | Higher Amazon e-book prices expected to coincide with iPad launch]
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