Originally Posted by gmw
The curiosity is whether this information will generate an artificial price escalation - an ebook bubble? That is: if the stats indicate that people are using price as a form of selection filter, then maybe the current freebies will try raising their prices to get in on the act. Thus, for the user selection filter to continue to work, they will have to look at higher prices ... and so on. It may become cheaper to buy from traditional publishers.
If all the $2.99 erotica I've seen is any indication, it won't. Its probably more like in World of Warcraft when everyone notices what everyone else has an item up for, and puts their stuff up at the same price.
Minus the profiteers and speculators who buy up reasonably- priced stuff and then try to flip it over, of course.