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The Benefits of Diverse Preferences in Library Consortia

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  • Doh-Shin Jeon
  • Domenico Menicucci

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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  • Doh-Shin Jeon & Domenico Menicucci, 2017. "The Benefits of Diverse Preferences in Library Consortia," Journal of Industrial Economics, Wiley Blackwell, vol. 65(1), pages 105-135, March.
    • Handle: RePEc:bla:jindec:v:65:y:2017:i:1:p:105-135
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    Cited by:

    1. Jeon, Doh-Shin & Menicucci, Domenico, 2014. "Buyer Group and Buyer Power When Sellers Compete," TSE Working Papers 14-543, Toulouse School of Economics (TSE), revised Nov 2017.
    2. Jeon, Doh-Shin & Menicucci, Domenico, 2019. "On the unprofitability of buyer groups when sellers compete," Games and Economic Behavior, Elsevier, vol. 115(C), pages 265-288.

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    More about this item

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

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