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Academic Journal Prices in a Digital Age: A Two-Sided Market Model

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Author Info

  • McCabe Mark J

    ()
    (Georgia Institute of Technology)

  • Snyder Christopher M.

    ()
    (Dartmouth College)

Abstract

Digital-age technologies promise to revolutionize the market for academic journals as they have other media. We model journals as intermediaries linking authors with readers in a two-sided market. We use the model to study the division of fees between authors and readers under various market structures, ranging from monopoly to free entry. The results help explain why print journals traditionally obtained most of their revenue from subscription fees. The results raise the possibility that digitization may lead to a proliferation of online journals targeting various author types. The paper contributes to the literature on two-sided markets in its analysis of free-entry equilibrium and modeling of product-quality certification.

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Bibliographic Info

Article provided by De Gruyter in its journal The B.E. Journal of Economic Analysis & Policy.

Volume (Year): 7 (2007)
Issue (Month): 1 (January)
Pages: 1-39

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Handle: RePEc:bpj:bejeap:v:7:y:2007:i:1:n:2

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Web page: http://www.degruyter.com

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Cited by:
  1. Jeon, Doh-Shin & Rochet, Jean-Charles, 2009. "The Pricing of Academic Journals: A Two-Sided Market Perspective," TSE Working Papers 09-098, Toulouse School of Economics (TSE).
  2. Mueller-Langer, Frank & Watt, Richard, 2012. "Optimal pricing and quality of academic journals and the ambiguous welfare effects of forced open access: a two-sided model," MPRA Paper 40191, University Library of Munich, Germany.
  3. Mark Armstrong, 2010. "Collection Sales: Good Or Bad For Journals?," Economic Inquiry, Western Economic Association International, vol. 48(1), pages 163-176, 01.
  4. Mueller, Christopher & Boehme, Enrico, 2011. "The monopoly benchmark on two-sided markets," MPRA Paper 34987, University Library of Munich, Germany.
  5. Besancenot, Damien & Vranceanu, Radu, 2014. "A model of scholarly publishing with hybrid academic journals," ESSEC Working Papers WP1406, ESSEC Research Center, ESSEC Business School.

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