Ostensibly, the Red Book of Westmarch includes the stories of The Hobbit and Lord of the Rings. However, the narrator's style and knowledge seem quite different between the two latter books. That is, in The Hobbit the narrator knows the entire story, referring to future events and feelings, yet is somehow bound by time, not delving into too much backgroud when there isn't enough time. Conversely, iirc, in Lord of the Rings, the narrator is simply a narrator, telling over the events as they happen, perhaps with a more serious tone.
Is there a connection between the Red Book of Westmarch, The Hobbit, and Lord of the Rings? That is, are they one and the same? Is the Red Book just source material for a later writer to author the other books? Or, is there no connection at all, the Red Book existing inside the world, The Hobbit and Lord of the Rings outside it.