It's surely competitive with physical books, including the cost of storing and handling them, otherwise libraries wouldn't buy them. A random on the internet says about library books: "Very popular hardcover books have a lifespan of around 20 circulations, which is around a year or less, depending on how well bound they are and how well the patrons treat them." Other books are regularly thrown away because they're not popular enough. So I presume publishers account for the short life of a library book in their pricing, and if they actually lasted forever, they'd cost more.
It's surely competitive with physical books, including the cost of storing and handling them, otherwise libraries wouldn't buy them. A random on the internet says about library books: "Very popular hardcover books have a lifespan of around 20 circulations, which is around a year or less, depending on how well bound they are and how well the patrons treat them." Other books are regularly thrown away because they're not popular enough. So I presume publishers account for the short life of a library book in their pricing, and if they actually lasted forever, they'd cost more.