Pricing is platform dependant. When your competetors are $0.99, you need to have a very superior game to charge $4.99 on an iPhone. But on the other hand, if you price at $4.99 on Steam you are sending a signal to potential buyers about the quality of the game you are offering... a signal that your game is very short/low on content or quality. Different channels have different pricing expectations.
In general you should price your game at a spot that you feel is fair, but offer a variety of promotions and offers to increase visibility of the game. Valve has discussed this on their blog, that developers often make more money when they sell their game at 75% off than they do at full price, because promotions get people interested and raise visibility. But that's not the same as PRICING your game permanently at the 75% off price point... people love deals, and when your game is priced at the lower point it's not a deal, it's just a 'cheap' game.
So find similar games to yours in the channel where you are selling and match their prices, but also offer frequent sales and promotions as this increases visibility and allows you to reach price points that raise your potential audience as well as increasing word-of-mouth about the game.