Abstract: In order to study pricing for p-books and e-books and contract selection strategy for the publisher, based on game theory, the four kinds of books dual-channel supply chain are modeled by contract portfolios. The results show that the prices of p-books and e-books are increasing functions of book substitution rate and unit royalty cost and are independent of buyout cost. When royalty costs are smaller, the publisher should choose royalty contract or else choose buyout contract. When share ratios are lesser, the publisher should select agency contract or else select wholesale contract. As the book substitution rate is lower, the publisher prefers royalty contract and agency contract. Otherwise, the publisher prefers buyout contract and wholesale contract.

Key words: p-books, e-books, dual-channel supply chain, pricing, contract selection