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

Figure 5

Retail price of p-books and e-books. Here, we set 𝛽=0.3,𝛼=0.7,𝑐_𝑇=1, and 𝜃=0.2,𝑆=1. (a) Retail prices of p-books and (b) is for retail prices of e-books. We can see that when the potential demand market changes, the result that both prices of the books are lower under agency pricing model will still hold.

(a)

(b)