Kindle Book Pricing Strategy

How does an new kindle author price his/her work? How does a reader put value on digital books? Should books be priced by size? A six page book costs 86p, a ten page cost 99p, a 300 page book costs £5.99. Does that create a value structure for that works for the author and the reader?

Another strategy someone else mentioned was for the author to price all their books at 99p to encourage people to buy them in order to get the book high up on the top sellers list, and then up the price once it has proved its popularity/value.