Amazon surrenders to Macmillan with higher e-book pricing

You don't often hear about powerhouses caving in. However, it looks like Amazon lost at a game of hardball with e-book and real book publisher Macmillan.

Up until now, Amazon could set the prices for the e-books sold for the Kindle — typically, $9.99 for a current best-seller. However, Macmillan changed how they wanted to price their publications. When a book is first released, they want to charge up to $14.99, selling at the same time as the hardcover.
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Amazon stopped selling Macmillan books temporarily, but finally rescinded and issued a rather strong statement. "We have expressed our strong disagreement and the seriousness of our disagreement by temporarily ceasing the sale of all Macmillan titles. We want you to know that ultimately, however, we will have to capitulate and accept Macmillan's terms because Macmillan has a monopoly over their own titles, and we will want to offer them to you even at prices we believe are needlessly high for e-books."

Would a $4.00 price bump from Macmillan make you give up a book you wanted for your Kindle? Or even ditch the Kindle? More importantly, do you think a publisher has the right to set the price of their own titles?

Via The New York Times