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When I published my novella on Amazon, I priced it at $0.99. It was free at Smashwords, and within a week Amazon had lowered the price to match.
I had a novel at Smashwords that was at $2, when I published it on Amazon I set the price to $2.99 so I could qualify for the 70% royalty option, that one dropped as well. I get 70% of every $2 sale now.
Ben, I thought about the same issue of fairness, but I only sold 1 copy at the $0.99 price in the week it was up; when it went to free I had 2,000 downloads within 48 hours.
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