“Do the electronic books reinforce the dynamics of book supply chain market?”–A theoretical analysis

• To study a book supply chain through mathematical modeling.
• Different copyright and launch modes are considered.
• To investigate pricing and launch strategies of electronic and physical books.
• Two copyright models are considered when studying strategies.
• Sensitivity analysis is conducted to assess influence of publisher's choice.

In this paper, we develop a set of mathematical models to examine and compare different pricing and launch strategies of electronic books (e-books) under two types of copyright arrangements, namely the royalty and buyout arrangements. We conduct a sensitivity analysis to assess how various market structure parameters influence the publisher's pricing options in different copyright, launch modes, and channels of distribution. Aimed at gaining managerial insights into the complex issues in pricing and launch strategies involving e-books, we recommend optimal launch strategies and pricing decisions for the e-book supply chain.