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I don't like the rush to the bottom, but face it, people will not pay for a lot for an unknown unless they already know what they're getting into.
These are my preferred pricing averages for e-books (in Canadian dollars):
Ernest Hemingway: $8.99 (trad publishing, well-known)
Mid-list author: $5.99 (trad publishing, don't know)
J. A. Konrath: $5.99 (indie published, well-known)
Unknown indie book: $3.99 (indie published, not well-known, but I might buy if I already have seen the author's work)
Get the name out: $0.99 (I'm more willing to impulse buy, take a chance, and read you on the bus for a few minutes. If I don't like you, I'm not too hurt.)
I personally don't pirate books. I'll only pirate a book if it's impossible for me to buy it.
As you see, I am more willing to pay more money for traditionally published books, just because the books have been pre-vetted. It'll likely change as the big publishing houses become less relevant, and alternative vetted ways emerge (niche stamp of approvals?). I'll pay more for a book if it got recognized by some bodies that I trust rather than through informal networks.
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