Pricing Models of e-Books When Competing with p-Books
Figure 2
Comparison of retail prices of books under different pricing strategies. (a) Information of the retail price of p-books and (b) the e-books’ retail prices. And the prices under wholesale pricing are marked by black and by red under agency pricing model. Here, we set , and , without loss of generality. We can see that in both cases, the retail prices are lower under agency pricing model.