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Optimal pricing and quality of academic journals and the ambiguous welfare effects of forced open access: A two-sided model

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  • Mueller-Langer, F.
  • Watt, R.

    (Tilburg University, Tilburg Law and Economics Center)

Abstract

We analyse optimal pricing and quality of a monopolistic journal and the optimality of open access in a two-sided model. The predominant aspect of the model that determines the quality levels at which open access is optimal is the nature of the relationship between readers and authors in a journal. In contrast to previous literature, we firstly show that there exist scenarios in which open access is a feature of high-quality journals. Second, we find that removal of copyright (and thus forced open access) decreases journal profits but has ambiguous social welfare effects.

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Bibliographic Info

Paper provided by Tilburg University, Tilburg Law and Economic Center in its series Discussion Paper with number 2012-019.

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Date of creation: 2012
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Handle: RePEc:dgr:kubtil:2012019

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Web page: http://www.tilburguniversity.nl/tilec/

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  1. Ted Bergstrom, 2001. "Free Labor for Costly Journals?," Microeconomics 0106002, EconWPA.
  2. domenico menicucci & doh-shin jeon, 2004. "bundling electronic journals and competition among publishers," Econometric Society 2004 Far Eastern Meetings 720, Econometric Society.
  3. Müller-Langer, Frank & Watt, Richard, 2010. "Copyright and Open Access for Academic Works," MPRA Paper 24095, University Library of Munich, Germany.
  4. Daniel S. Hamermesh, 1992. "The Young Economist's Guide to Professional Etiquette," Journal of Economic Perspectives, American Economic Association, vol. 6(1), pages 169-179, Winter.
  5. McCabe Mark J & Snyder Christopher M., 2007. "Academic Journal Prices in a Digital Age: A Two-Sided Market Model," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(1), pages 1-39, January.
  6. repec:rje:randje:v:37:y:2006:3:p:645-667 is not listed on IDEAS
  7. Mark McCabe, 2004. "Information goods and endogenous pricing strategies: the case of academic journals," Economics Bulletin, AccessEcon, vol. 12(10), pages 1-11.
  8. Jean-Charles Rochet & Jean Tirole, 2002. "Cooperation Among Competitors: Some Economics Of Payment Card Associations," RAND Journal of Economics, The RAND Corporation, vol. 33(4), pages 549-570, Winter.
  9. Doh-Shin Jeon & Jean-Charles Rochet, 2010. "The Pricing of Academic Journals: A Two-Sided Market Perspective," American Economic Journal: Microeconomics, American Economic Association, vol. 2(2), pages 222-55, May.
  10. repec:fth:calaec:16-01 is not listed on IDEAS
  11. Glenn Ellison, 2002. "The Slowdown of the Economics Publishing Process," Journal of Political Economy, University of Chicago Press, vol. 110(5), pages 947-993, October.
  12. repec:ebl:ecbull:v:12:y:2004:i:10:p:1-11 is not listed on IDEAS
  13. Oster, Sharon, 1980. "The Optimal Order for Submitting Manuscripts," American Economic Review, American Economic Association, vol. 70(3), pages 444-48, June.
  14. Mark J. McCabe & Christopher M. Snyder, 2005. "Open Access and Academic Journal Quality," American Economic Review, American Economic Association, vol. 95(2), pages 453-459, May.
  15. Heintzelman Martin & Nocetti Diego, 2009. "Where Should we Submit our Manuscript? An Analysis of Journal Submission Strategies," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 9(1), pages 1-28, September.
  16. repec:rje:randje:v:37:y:2006:3:p:668-691 is not listed on IDEAS
  17. Marc Rysman, 2009. "The Economics of Two-Sided Markets," Journal of Economic Perspectives, American Economic Association, vol. 23(3), pages 125-43, Summer.
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