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I've heard a whole variety of answers to that question ranging from "No more than 2/3rds of the paperback shelf price" to "no higher than $1.99, period." So, uh, yeah. It depends a lot on the market, and the people who are most likely to buy from you. If it's a market full of effluent people or people expecting high book prices, then you can get away with higher prices. But if the average reader is a tightwad, you'll be lucky to get $2 out of them. So really look at your market closely and it'll tell you loads about what they're willing to pay. Then set your prices accordingly. Mine range between $2.99 and $8 a copy, depending on the site and the market where they're offered.
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