Most indie authors price their books between 99 cents and $2.99. Some go as high as $4.99. The reason isn't because these authors think their works are inferior to the books written by traditionally published authors. On the contrary, I believe it's because indie authors are more in tune with readers' expectations and have the freedom to price their books accordingly.
Readers have spoken loud and clear that outrageously high eBook prices are not tolerable. For example, there was a recent article on CNET titled "Kindle and Nook readers bash high e-book pricing with angry one-star reviews". Giving one-star reviews for high-priced eBooks is one option, but readers can better express their displeasure by not buying the books at all. Traditionally publishers won't lower their eBook prices until they find it economically unviable for them to maintain the high prices they charge, either because readers stop buying them, or because competition from lower-priced indie books squeezes their profits (because readers stop buying the more expensive eBooks from traditional publishers).
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