Perhaps it's bad of me when it comes to trying to run a business (but at the same time, I don't see this as a business, it's a hobby for me), but I don't try to compete with others. I make what I want to make, when I want to make it, and I price it accordingly. I don't search around to see what others are doing. There is a minimum, and maximum amount that I'll be happy to accept for each piece, and I will not accept more or less. I don't charge these prices, however, go for middle-ish. If the price I first set is no good, I'll go up or down. Whichever works, I stick with.
Maybe I should be checking out my competators, but at the same time, I don't know where they are, and I'd rather not find out. I'm happy selling what I sell for the prices I sell them. If someone doesn't wish to pay that much for it, then they won't. I won't slice my prices to make others happy and then find myself out of pocket or feeling like my work isn't worth anything anymore. I have my own morals and I stick to them.
That said, it also means that I'm not likely to copy people (knowingly - lots of people end up making similar things, but there's a difference between copying and making something similar because of a similar train of thought) and it keeps me feeling positive. Perhaps because I isolate myself from people selling similar things, but if that's what it takes to keep me from feeling bogged down by other people's success, then that's what it takes. Like I said, this is my hobby, not my business. I have absolutely no intention to do this for the rest of my life, it's just a way to bring in some money while I'm unable to get a job as I care for my disabled mother.
But it is interesting reading other people's responses. Some seem to compete frequently, while others do their own thing. At the end of the day, I think it comes down to how seriously you take your shop (not your products, but the shop itself - I work hard on my products, but not so much on my shop, which is why I don't research or compete).
