Abstract
Book pricing is problematic for two main reasons. First, because legal restrictions make pricing decisions irreversible. Second, because publishers must set prices for many books every year. Therefore, a sound knowledge of consumer reaction to price is essential for good pricing decisions. Our research examines consumer reactions to prices, provides price elasticities based on a large sample of fiction books, and creates a comprehensive set of quality measures and control variables. Our results show that once price endogeneity is considered, consumers are price elastic. Moreover, we find that the price elasticity for hardcover books is substantially smaller than for paperbacks.
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The authors thank two anonymous reviewers and the editors for their valuable comments on earlier versions of this paper. The order of authors is alphabetical.
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Barrot, C., Becker, J.U., Clement, M. et al. Price Elasticities for Hardcover and Paperback Fiction Books. Schmalenbach Bus Rev 67, 73–91 (2015). https://doi.org/10.1007/BF03396924
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DOI: https://doi.org/10.1007/BF03396924