The Pricing of Academic Journals
AbstractIn this paper we investigate the claim that academic journals are too expensive. We estimate library demand for academic journals and ask if short run profit maximization by publishers can explain observed prices. Libraries purchase a portfolio of journals so to estimate demand we extend the standard discrete choice model, and estimation methods, to allow for a choice consisting of a subset of a larger set of journals. Unlike the discrete choice model, the model allows for both positive and negative cross-price effects. We estimate the model using library holdings data and find that on average prices in the industry are lower than what static pricing models predict. Furthermore, we simulate the effects of mergers and find that the likely unilateral effect of a merger is to lower prices.
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Bibliographic InfoPaper provided by Berkeley Olin Program in Law & Economics in its series Berkeley Olin Program in Law & Economics, Working Paper Series with number qt13d1h835.
Date of creation: 17 Nov 2006
Date of revision:
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- domenico menicucci & doh-shin jeon, 2004.
"bundling electronic journals and competition among publishers,"
Econometric Society 2004 Far Eastern Meetings
720, Econometric Society.
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- Doh-Shin Jeon & Domenico Menicucci, 2005. "Bundling Electronic Journals and Competition among Publishers," Working Papers 270, Barcelona Graduate School of Economics.
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- Aviv Nevo, 2000. "Mergers with Differentiated Products: The Case of the Ready-to-Eat Cereal Industry," RAND Journal of Economics, The RAND Corporation, vol. 31(3), pages 395-421, Autumn.
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