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

<table>Dual channels of the book industry. The publisher provides two forms of books to the retailers. And the p-books are sold under the price-only contract, and the wholesale price and retail price of p-books are <svg height="11.825" id="M15" style="vertical-align:-3.27605pt" version="1.1" viewbox="0 0 20.775 11.825" width="20.775" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink">
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</svg> and <svg height="13.8875" id="M16" style="vertical-align:-3.9858pt" version="1.1" viewbox="0 0 18.75 13.8875" width="18.75" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink">
<g transform="matrix(.017,-0,0,-.017,.062,8.863)"><path d="M570 304q0 -108 -87 -199q-40 -42 -94.5 -74t-105.5 -43q-41 0 -65 11l-29 -141q-9 -45 -1.5 -58t45.5 -16l26 -2l-5 -29l-241 -10l4 26q51 10 67.5 24t26.5 60l113 520q-54 -20 -89 -41l-7 26q38 28 105 53l11 49q20 25 77 58l8 -7l-17 -77q39 14 102 14q82 0 119 -36
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<g transform="matrix(.012,-0,0,-.012,10.138,13.838)"><path d="M649 676l-22 -187l-33 -2q3 56 -12 94q-8 20 -31.5 26.5t-86.5 6.5h-74l-90 -491q-4 -23 -6 -36.5t1 -25t7 -16.5t18 -9t27 -5t41 -3l-6 -28h-286l4 28q68 5 84 18.5t28 76.5l94 491h-55q-74 0 -100.5 -6t-41.5 -23q-24 -29 -54 -98l-32 1q32 98 53 188h22q7 -18 15 -22
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</svg> respectively. The e-books can be sold either under wholesale pricing model or under agency pricing model.</table>

Mathematical Problems in Engineering

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

Figure 1