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When Is Building a Library Consortium Bene ficial?

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  • Jeon, Doh-Shin
  • Menicucci, Domenico

Abstract

This paper identifies strategies to build a library consortium from a long term point of view. Contrary to the conventional wisdom to build a consortium around groups of homogenous institutions (Davis, 2002), we find that libraries with similar preferences are likely to lose from building a consortium while libraries with opposite preferences almost always gain from it. Our results suggest a strong tension between a short-term strategy and a long-term strategy as long as the former dictates forming a consortium around libraries with homogenous preferences in order to gain from quantity discounts. This tension might create a "library consortium trap".

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File URL: http://idei.fr/doc/by/jeon/LibraryConsortium7April2014.pdf
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Bibliographic Info

Paper provided by Institut d'Économie Industrielle (IDEI), Toulouse in its series IDEI Working Papers with number 791.

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Date of creation: 21 Aug 2013
Date of revision: 07 Apr 2014
Handle: RePEc:ide:wpaper:27444

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Related research

Keywords: Library Consortium; Academic Journals; Personalized Prices; Cor- relation; Multimarket contact; Level-playing Field;

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References

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  1. Jeon, Doh-Shin & Menicucci, Domenico, 2009. "Interconnection among Academic Journal Websites: Multilateral versus Bilateral Interconnection," TSE Working Papers 09-102, Toulouse School of Economics (TSE).
  2. Anindya Ghose & Ke-Wei Huang, 2009. "Personalized Pricing and Quality Customization," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 18(4), pages 1095-1135, December.
  3. Mathias Dewatripont & Victor Ginsburgh & Patrick Legros & Alexis Walckiers & Jean-Pierre Devroey & Marianne Dujardin & Françoise Vandooren & Pierre Dubois & Jérôme Foncel & Marc Ivaldi & Marie-Domi, 2006. "Study on the economic and technical evolution of the scientific publication markets in Europe," ULB Institutional Repository 2013/9545, ULB -- Universite Libre de Bruxelles.
  4. Mark Armstrong, 2010. "Collection Sales: Good Or Bad For Journals?," Economic Inquiry, Western Economic Association International, vol. 48(1), pages 163-176, 01.
  5. Doh-Shin Jeon & Jean-Charles Rochet, 2007. "The pricing of academic journals: A two-sided market perspective," Economics Working Papers 1025, Department of Economics and Business, Universitat Pompeu Fabra, revised Apr 2009.
  6. Doh Shin Jeon & Domenico Menicucci, 2001. "Optimal second-degree price discrimination and arbitrage: On the role of asymetric information among buyers," Economics Working Papers 624, Department of Economics and Business, Universitat Pompeu Fabra, revised Jan 2005.
  7. Doh-Shin Jeon & Domenico Menicucci, 2012. "Bundling and Competition for Slots," American Economic Review, American Economic Association, vol. 102(5), pages 1957-85, August.
  8. Bergstrom, Ted, 2001. "Free Labor for Costly Journals?," University of California at Santa Barbara, Economics Working Paper Series qt5jc0893p, Department of Economics, UC Santa Barbara.
  9. domenico menicucci & doh-shin jeon, 2004. "bundling electronic journals and competition among publishers," Econometric Society 2004 Far Eastern Meetings 720, Econometric Society.
  10. repec:fth:calaec:16-01 is not listed on IDEAS
  11. Thisse, Jacques-Francois & Vives, Xavier, 1988. "On the Strategic Choice of Spatial Price Policy," American Economic Review, American Economic Association, vol. 78(1), pages 122-37, March.
  12. Ingela Alger, 1999. "Consumer Strategies Limiting the Monopolist's Power: Multiple and Joint Purchases," RAND Journal of Economics, The RAND Corporation, vol. 30(4), pages 736-757, Winter.
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