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Analysis and comparison of pricing structure for electronic book markets

When the online market for physical books was nascent over a decade ago, Amazon
charged low prices. A 2001 study of Amazon s book pricing found low price elasticities
indicative of prices below the static profit-maximizing level. By 2011, Amazon controlled
about 75% of the online market for trade books in print format. In our paper we will study
the pricing of Hardcover, Paperback and E-book versions of our dataset (say 1000).
Comparing these using appropriate statistical model we will find out how Amazon s e-
book prices and its physical book prices compare with the static profit-maximizing level.
Our project scope may also include comparing prices between two e-book stores, through
which me may get further insights into competitive pricing strategies in electronic book
market.

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