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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, Frank
  • Watt, Richard

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 University Library of Munich, Germany in its series MPRA Paper with number 40191.

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Date of creation: 25 Apr 2012
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Handle: RePEc:pra:mprapa:40191

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Keywords: Open access; academic journals; two-sided market; ambiguous welfare effects of removal of copyright;

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  1. Mark McCabe, 2004. "Information goods and endogenous pricing strategies: the case of academic journals," Economics Bulletin, AccessEcon, vol. 12(10), pages 1-11.
  2. Glenn Ellison, 2000. "The Slowdown of the Economics Publishing Process," NBER Working Papers 7804, National Bureau of Economic Research, Inc.
  3. repec:fth:calaec:16-01 is not listed on IDEAS
  4. Jeon, Doh-Shin & Rochet, Jean-Charles, 2009. "The Pricing of Academic Journals: A Two-Sided Market Perspective," IDEI Working Papers 458, Institut d'Économie Industrielle (IDEI), Toulouse.
  5. Marc Rysman, 2009. "The Economics of Two-Sided Markets," Journal of Economic Perspectives, American Economic Association, vol. 23(3), pages 125-43, Summer.
  6. Oster, Sharon, 1980. "The Optimal Order for Submitting Manuscripts," American Economic Review, American Economic Association, vol. 70(3), pages 444-48, June.
  7. repec:rje:randje:v:37:y:2006:3:p:645-667 is not listed on IDEAS
  8. 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.
  9. repec:rje:randje:v:37:y:2006:3:p:668-691 is not listed on IDEAS
  10. 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.
  11. Doh-Shin Jeon & Domenico Menicucci, 2005. "Bundling Electronic Journals and Competition among Publishers," Working Papers 270, Barcelona Graduate School of Economics.
  12. repec:ebl:ecbull:v:12:y:2004:i:10:p:1-11 is not listed on IDEAS
  13. 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.
  14. Ted Bergstrom, 2001. "Free Labor for Costly Journals?," Microeconomics 0106002, EconWPA.
  15. Müller-Langer, Frank & Watt, Richard, 2010. "Copyright and Open Access for Academic Works," MPRA Paper 24095, University Library of Munich, Germany.
  16. 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.
  17. 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.
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