The reason for this is that both paper and printing here is cheap along with labor. The original author also licenses for cheap. The publishing houses however take a large cut increasing the cost of the book.
People get a hold of the epub and print them and sell them for 1/4th of the price sometimes 1/10th for new and even less for used.
The only way I see around this is digital libraries. Let people rent unlimited books (but like Netflix limited at a time) and take a monthly cut.