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Direct publishing and the bargaining between the author and the publisher

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  • Mustonen, Mikko

Abstract

An Author may directly publish some of his output for free use to increase consumer awareness and thus his profits from performances. The Publisher receives only a share of the profits of the remaining copyright work. We analyze the Author's actions and their effect on the bargaining between the Author and the Publisher. The Publisher voluntarily gives in the bargaining. She accommodates direct publishing so that its level maximizes his profit or she deters direct publishing. The Publisher's profit may be increasing in the distribution cost, due to the threat of direct publishing. Compared to bargaining, joint decision-making, a “360 deal”, reduces the appearance and volume of direct publishing and yields higher surplus. A high level of welfare arises if parties jointly publish directly all output.

Suggested Citation

  • Mustonen, Mikko, 2019. "Direct publishing and the bargaining between the author and the publisher," Information Economics and Policy, Elsevier, vol. 48(C), pages 40-47.
    • Handle: RePEc:eee:iepoli:v:48:y:2019:i:c:p:40-47
    DOI: 10.1016/j.infoecopol.2017.10.003
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    References listed on IDEAS

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    More about this item

    Keywords

    Copyright; Bargaining; Publishing;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General

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