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I'd think that since you wouldn't have to worry about binding and shipping the product (since ebooks are all electronic media) that you will already stand to make more $$ in actual profits from a given work. So therefore you can set a fair price that won't break the budget for potential readers and still stand to make some money from it. I mean while money isn't the only reason why a person writes most of us can't afford to give the product of our labors away entirely for free either. I'd say somewhere between .99 and $9.99 for the average book is a good price. Most paperbacks run about that these days if not a bit more, and some potential readers might figure that if you're giving it away for free then it must not be very well written. After all if the author doesn't see his/her writing as worth charging for how good can it really be? Just my opinion of course.
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