{"id":{"repo_id":"penn","oai_identifier":"oai:repository.upenn.edu:20.500.14332/27862"},"canonical_url":"https://search.dev.ndltd.org/etd/penn/oai:repository.upenn.edu:20.500.14332/27862","repository":{"repo_id":"penn","name":"University of Pennsylvania","base_url":"https://repository.upenn.edu/server/oai/request"},"display":{"title":"Dynamic Demand and Pricing Strategy in the E-Book Market","abstract":"E-reading has experienced rapid growth in the past few years and has raised new questions. On the supply side, retailers such as Amazon jointly sell e-readers and e-books. It remains unclear how they can coordinate the two products to conduct intertemporal price discrimination (IPD). On the demand side, it remains unclear how much of e-book sales come from cannibalizing print books and how much serve as market expansion to the book business. I empirically address these questions using individual-level data from 2008 to 2012. I estimate a dynamic structural model of consumer e-reader adoption and subsequent book purchases, including quantity, reading format (e-book or print book), and retailer choices (Amazon, other online retailers, or offline bookstores) in a number of book genres. The estimation reveals two consumer types, avid readers and general readers, who self-select into buying e-readers based on their unobserved heterogeneous book tastes. Compared with general readers, avid readers buy more books, adopt e-readers earlier, and have larger cannibalization rates. The two types also have different relative demand elasticities between e-readers and e-books. Given the estimated demand system, I simulate the optimal dynamic pricing strategies of e-readers and e-books for the monopolist retailer Amazon who faces forward-looking consumers. I find that Amazon should harvest on e-readers and invest in e-books. Complementarity provides the firm a novel dimension of consumer heterogeneity (the relative demand elasticities between e-readers and e-books) to exploit. The joint IPD strategy provides a better screening device for more profitable consumers and limits consumer's ability to intertemporally arbitrage. To evaluate the impact of e-books on print book sales, I simulate the world without e-books and compare it with the observed one. I find that 42% of e-book sales come from cannibalizing print book sales and that 58% come from market expansion. Of the cannibalization effect, offline bookstores bear 53% of the cannibalization loss, while Amazon bears 32% and other online retailers bear 15%. I further explore how the impact of e-books would change under alternative pricing arrangements. Overall, the results have managerial implications to publishers, book retailers, and policymakers in the e-book market.","abstract_html":"E-reading has experienced rapid growth in the past few years and has raised new questions. On the supply side, retailers such as Amazon jointly sell e-readers and e-books. It remains unclear how they can coordinate the two products to conduct intertemporal price discrimination (IPD). On the demand side, it remains unclear how much of e-book sales come from cannibalizing print books and how much serve as market expansion to the book business. I empirically address these questions using individual-level data from 2008 to 2012. I estimate a dynamic structural model of consumer e-reader adoption and subsequent book purchases, including quantity, reading format (e-book or print book), and retailer choices (Amazon, other online retailers, or offline bookstores) in a number of book genres. The estimation reveals two consumer types, avid readers and general readers, who self-select into buying e-readers based on their unobserved heterogeneous book tastes. Compared with general readers, avid readers buy more books, adopt e-readers earlier, and have larger cannibalization rates. The two types also have different relative demand elasticities between e-readers and e-books. Given the estimated demand system, I simulate the optimal dynamic pricing strategies of e-readers and e-books for the monopolist retailer Amazon who faces forward-looking consumers. I find that Amazon should harvest on e-readers and invest in e-books. Complementarity provides the firm a novel dimension of consumer heterogeneity (the relative demand elasticities between e-readers and e-books) to exploit. The joint IPD strategy provides a better screening device for more profitable consumers and limits consumer's ability to intertemporally arbitrage. To evaluate the impact of e-books on print book sales, I simulate the world without e-books and compare it with the observed one. I find that 42% of e-book sales come from cannibalizing print book sales and that 58% come from market expansion. Of the cannibalization effect, offline bookstores bear 53% of the cannibalization loss, while Amazon bears 32% and other online retailers bear 15%. I further explore how the impact of e-books would change under alternative pricing arrangements. Overall, the results have managerial implications to publishers, book retailers, and policymakers in the e-book market.","abstract_has_math":false,"creators":["Li, Hui"],"institution":null,"degree_name":null,"degree_level":null,"degree_discipline":null,"degree_department":null,"school":null,"contributors":[],"advisors":["Holger Sieg"],"committee_chairs":[],"committee_members":[],"year":2015,"date_issued":"2015-01-01","date_published":"2015-01-01","updated_at":"2026-07-24T03:47:17Z","subjects":[],"languages":["en"],"rights":["Hui Li"],"rights_urls":[],"identifier_entries":[]},"links":{"outbound_url":"https://repository.upenn.edu/handle/20.500.14332/27862","outbound_label":"Repository record","outbound_source":"dc:identifier.uri"},"metadata_groups":[{"id":"people","label":"People","entries":[{"key":"dc:contributor.advisor","label":"Advisor","values":["Holger Sieg"]},{"key":"dc:creator","label":"Author","values":["Li, Hui"]}]},{"id":"academic_context","label":"Academic Context","entries":[{"key":"dc:date","label":"Dc Date","values":["2023-05-17T11:58:08.000"]},{"key":"dc:date.accessioned","label":"Dc Date Accessioned","values":["2023-05-22T16:21:52Z"]},{"key":"dc:date.available","label":"Dc Date Available","values":["2001-01-01T00:00:00Z"]},{"key":"dc:date.issued","label":"Date","values":["2015-01-01"]},{"key":"dc:type","label":"Dc Type","values":["Dissertation/Thesis"]}]},{"id":"language_rights","label":"Language and Rights","entries":[{"key":"dc:language","label":"Dc Language","values":["en"]},{"key":"dc:rights","label":"Dc Rights","values":["Hui Li"]}]},{"id":"identifiers","label":"Identifiers","entries":[{"key":"dc:identifier.uri","label":"Identifier URI","values":["https://repository.upenn.edu/handle/20.500.14332/27862"]}]},{"id":"additional","label":"Additional Metadata","entries":[{"key":"dc:description.abstract","label":"Abstract","values":["E-reading has experienced rapid growth in the past few years and has raised new questions. On the supply side, retailers such as Amazon jointly sell e-readers and e-books. It remains unclear how they can coordinate the two products to conduct intertemporal price discrimination (IPD). On the demand side, it remains unclear how much of e-book sales come from cannibalizing print books and how much serve as market expansion to the book business. I empirically address these questions using individual-level data from 2008 to 2012. I estimate a dynamic structural model of consumer e-reader adoption and subsequent book purchases, including quantity, reading format (e-book or print book), and retailer choices (Amazon, other online retailers, or offline bookstores) in a number of book genres. The estimation reveals two consumer types, avid readers and general readers, who self-select into buying e-readers based on their unobserved heterogeneous book tastes. Compared with general readers, avid readers buy more books, adopt e-readers earlier, and have larger cannibalization rates. The two types also have different relative demand elasticities between e-readers and e-books. Given the estimated demand system, I simulate the optimal dynamic pricing strategies of e-readers and e-books for the monopolist retailer Amazon who faces forward-looking consumers. I find that Amazon should harvest on e-readers and invest in e-books. Complementarity provides the firm a novel dimension of consumer heterogeneity (the relative demand elasticities between e-readers and e-books) to exploit. The joint IPD strategy provides a better screening device for more profitable consumers and limits consumer's ability to intertemporally arbitrage. To evaluate the impact of e-books on print book sales, I simulate the world without e-books and compare it with the observed one. I find that 42% of e-book sales come from cannibalizing print book sales and that 58% come from market expansion. Of the cannibalization effect, offline bookstores bear 53% of the cannibalization loss, while Amazon bears 32% and other online retailers bear 15%. I further explore how the impact of e-books would change under alternative pricing arrangements. Overall, the results have managerial implications to publishers, book retailers, and policymakers in the e-book market."]},{"key":"dc:description.degree","label":"Dc Description Degree","values":["Doctor of Philosophy (PhD)"]},{"key":"dc:format.mimetype","label":"Dc Format Mimetype","values":["application/pdf"]},{"key":"dc:title","label":"Title","values":["Dynamic Demand and Pricing Strategy in the E-Book Market"]}]}],"canonical_facts":{"dc:contributor.advisor":["Holger Sieg"],"dc:creator":["Li, Hui"],"dc:date":["2023-05-17T11:58:08.000"],"dc:date.accessioned":["2023-05-22T16:21:52Z"],"dc:date.available":["2001-01-01T00:00:00Z"],"dc:date.issued":["2015-01-01"],"dc:description.abstract":["E-reading has experienced rapid growth in the past few years and has raised new questions. On the supply side, retailers such as Amazon jointly sell e-readers and e-books. It remains unclear how they can coordinate the two products to conduct intertemporal price discrimination (IPD). On the demand side, it remains unclear how much of e-book sales come from cannibalizing print books and how much serve as market expansion to the book business. I empirically address these questions using individual-level data from 2008 to 2012. I estimate a dynamic structural model of consumer e-reader adoption and subsequent book purchases, including quantity, reading format (e-book or print book), and retailer choices (Amazon, other online retailers, or offline bookstores) in a number of book genres. The estimation reveals two consumer types, avid readers and general readers, who self-select into buying e-readers based on their unobserved heterogeneous book tastes. Compared with general readers, avid readers buy more books, adopt e-readers earlier, and have larger cannibalization rates. The two types also have different relative demand elasticities between e-readers and e-books. Given the estimated demand system, I simulate the optimal dynamic pricing strategies of e-readers and e-books for the monopolist retailer Amazon who faces forward-looking consumers. I find that Amazon should harvest on e-readers and invest in e-books. Complementarity provides the firm a novel dimension of consumer heterogeneity (the relative demand elasticities between e-readers and e-books) to exploit. The joint IPD strategy provides a better screening device for more profitable consumers and limits consumer's ability to intertemporally arbitrage. To evaluate the impact of e-books on print book sales, I simulate the world without e-books and compare it with the observed one. I find that 42% of e-book sales come from cannibalizing print book sales and that 58% come from market expansion. Of the cannibalization effect, offline bookstores bear 53% of the cannibalization loss, while Amazon bears 32% and other online retailers bear 15%. I further explore how the impact of e-books would change under alternative pricing arrangements. Overall, the results have managerial implications to publishers, book retailers, and policymakers in the e-book market."],"dc:description.degree":["Doctor of Philosophy (PhD)"],"dc:format.mimetype":["application/pdf"],"dc:identifier.uri":["https://repository.upenn.edu/handle/20.500.14332/27862"],"dc:language":["en"],"dc:rights":["Hui Li"],"dc:title":["Dynamic Demand and Pricing Strategy in the E-Book Market"],"dc:type":["Dissertation/Thesis"]},"updated_at":"2026-07-24T03:47:17Z"}