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

Figure 7

Price of books when the price elasticity changes. Here, we set 𝜃=0.2,𝛼=0.7,𝑐_𝑇=1,𝜇=0.5, and 𝑆=1. (a) Retail prices of p-books and (b) retail prices of e-books. We can see that when the price elasticity changes, the results that both prices of the books will be lower under agency pricing model still hold.

(a)

(b)