The New York Times notes that half of Amazon's bestselling Kindle books are sold for $0.00. I suppose this is no different than iPhone developers giving away some apps and charging for others (or premium features) in the App Store - it's the best way to attract attention without a costly advertising campaign.
I see it as a win-win - you get to try a book for free, the author may get you hooked and ready to buy future releases.
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