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Seeing a book for free definitely does make it more likely for me to look at it, but I don't always download or read them.
As others have mentioned, there are different kinds of free books - and I treat them differently.
1) Major (ie. I can find them in the bookstore) publisher's promo: Most of these get downloaded unless they're a genre I don't read (say Christian fiction or romance), and a reasonable proportion get read. Books I haven't read by authors I've read before and enjoy get both downloaded and read.
2) Public Domain: Most of the PD books I download are ones I've already read (often several times) and want to keep an electronic copy of. Some I read, some I don't - but I just feel more comfortable being able to have these books on my reader because they are old friends.
3) New/Independent Authors: I download a fair number of these (often because I just want to give the author a shot). I don't read all that many of them, and these are the books I'm most likely to start and not finish. Still, I never know when I might find something really good.
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