The coexistence of printed book and electronic book in a book supply chain

The prosperity of diversified book market has significantly affected the management of book supply chain. In this paper, we construct a theoretical model to study the coexistence of printed book and electronic book in a book supply chain, which consists of one publisher, one printed book retail store, and one electronic book retail store. We derive the optimal wholesale price, retail price of printed book and retail price of electronic book to maximize the profits of the three parties in the supply chain. Besides, we find that the electronic book retail store should set a much lower price of electronic book than that of printed book set by the printed book retail store. Moreover, by further studying the effects of wholesale price, unit production cost of printed book and royalty rate of electronic book, some managerial insights are discussed in the paper.