[fjtorres]

All the focus on pricing is silly.
You don't have to match Amazon on pricing to prosper. You do have to match them on user experience. If the catalog is comparable and the store is easy to navigate and you have good customer service, most customers won't mind a slightly higher price.
What goes unsaid when ebook vendors whinge sbout Amazon's ebook pricing is that they don't come close to matching Kindle in other, non-price areas.

Before agency, the rule of thumb was that some books were cheaper at amazon, some were cheaper elsewhere; now that the conspiracy is done, that is true once more. Competing doesn't mean you have to match every last Kindle price or even most of them. All it mean is you have to offer customers a comparable experience. Satisfy the cudtomer and they'll stay with you.