Why does pricing one's ebook at $1.99 tend to result in far lower sales than pricing it at $2.99 or $0.99?

This is what I keep hearing but no one seems to be able to provide an explanation. Is it because 2.99 is high enough to be make the book respectable while 0.99 is low enough to make it easy for people to purchase it, while 1.99 is some sort of danger middle zone?

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Why does pricing one's ebook at $1.99 tend to result in far lower sales than pricing it at $2.99 or $0.99?

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