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

Table 1

Prices of books and profit distribution when e-books and p-books are independent.

	WP	AP
𝑝^∗𝑇	(3+𝛽𝑐𝑇)/(4𝛽)	(3+𝛽𝑐𝑇)/(4𝛽)
𝑝^∗𝑒	3/(4𝛽)	1/(2𝛽)
𝑔^∗𝑇	𝜇𝑆1−𝛽𝑐𝑇^2/(16𝛽)	𝜇𝑆1−𝛽𝑐𝑇^2/(16𝛽)
𝑔^∗𝑒	1−𝜇𝑆/(16𝛽)	(1−𝛼)1−𝜇𝑆/(4𝛽)
𝑔^∗𝑝	𝑆𝜇1−𝛽𝑐𝑇^2+1−𝜇/(8𝛽)	𝑆𝜇1−𝛽𝑐𝑇^2+2𝛼1−𝜇/(8𝛽)
Total	3𝑆𝜇1−𝛽𝑐𝑇^2+1−𝜇/(16𝛽)	𝑆3𝜇1−𝛽𝑐𝑇^2+(1+3𝛼)1−𝜇/(16𝛽)