The pricing model that most publishers use for books and eBooks today was received second hand from the previous generation of publishers. That pricing model and its underlying assumptions are being challenged by compound pricing models for eBooks, such as: reading device plus eBook cost, reader device plus subscription, reader device plus free download, paid download without dedicated device, and free. At the same time, paper book pricing models are breaking apart for bestsellers, as retail outlets cut cover prices to the point that the very concept of a cover price may become obsolete. Making the situation even more complicated are the pricing models for second hand eBooks and books, in those cases where eBooks can be legally and physically resold. The bizarre mathematics behind second hand paperback pricing models only has to work for the seller, but pricing for preowned eBooks and new books of all formats has to work for the publisher and author as well.

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