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

Figure 8

Profit of the whole system and the publisher as price elasticity increases. Here, we set 𝜃=0.2,𝛼=0.7,𝑐_𝑇=1,𝜇=0.5, and 𝑆=1. (a) Profit of the publisher and (b) the profit of the whole system. We can see that when the price elasticity changes, the result that agency pricing model benefits the whole system and the publisher still hold.

(a)

(b)