Optimal Pricing and Quality of Academic Journals and the Ambiguous Welfare Effects of Forced Open Access: A Two-sided Model
AbstractWe 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 (non-linear) externalities between readers and authors in a journal. We show that there exist scenarios in which open access is a feature of high-quality journals. Besides, we find that the removal of copyright (and thus forced open access) will likely increase both readership and authorship, will decrease journal profits, and may increase social welfare.
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Bibliographic InfoPaper provided by University of Munich, Department of Economics in its series Discussion Papers in Economics with number 16277.
Date of creation: 21 Aug 2013
Date of revision:
Two-sided markets; academic journals; open access; removal of copyright; welfare effects;
Find related papers by JEL classification:
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
- O34 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Intellectual Property Rights
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-08-31 (All new papers)
- NEP-COM-2013-08-31 (Industrial Competition)
- NEP-CUL-2013-08-31 (Cultural Economics)
- NEP-IND-2013-08-31 (Industrial Organization)
- NEP-IPR-2013-08-31 (Intellectual Property Rights)
- NEP-MIC-2013-08-31 (Microeconomics)
- NEP-NET-2013-08-31 (Network Economics)
- NEP-SOG-2013-08-31 (Sociology of Economics)
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