Pricing Models of e-Books When Competing with p-Books

Figure 6

Profit of the publisher and the whole system when the potential demand changes. Here, we set 𝛽=0.3,𝛼=0.7,𝑐_𝑇=1,𝜃=0.2, and 𝑆=1. (a) Profit of the publisher and (b) the profit of the whole system. We can see that when the potential demand market changes, the result that agency pricing model benefits the whole system and the publisher still holds.

(a)

(b)