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Open Access as a Crude Solution to a Hold‐Up Problem in the Two‐Sided Market for Academic Journals

Author

Listed:
  • Mark J. McCabe
  • Christopher M. Snyder

Abstract

We analyze a model in which journals cannot commit to subscription fees when authors (who prefer low subscription fees because this boosts readership) make submission decisions. A hold‐up problem arises, manifested as excessive subscription fees. Open access is a crude attempt to avoid hold up by eliminating subscription fees. We assess the profitability and efficiency of traditional relative to open‐access journals in a monopoly model (with extensions to nonprofit, bundled, hybrid, and competing journals). We apply the theory to understand the evolving market for academic journals in the Internet age and policies currently being debated such as an open‐access mandate.

Suggested Citation

  • Mark J. McCabe & Christopher M. Snyder, 2018. "Open Access as a Crude Solution to a Hold‐Up Problem in the Two‐Sided Market for Academic Journals," Journal of Industrial Economics, Wiley Blackwell, vol. 66(2), pages 301-349, June.
    • Handle: RePEc:bla:jindec:v:66:y:2018:i:2:p:301-349
    DOI: 10.1111/joie.12167
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    Cited by:

    1. Oliver Budzinski & Thomas Grebel & Jens Wolling & Xijie Zhang, 2020. "Drivers of article processing charges in open access," Scientometrics, Springer;Akadémiai Kiadó, vol. 124(3), pages 2185-2206, September.
    2. Carmen López-Vergara & Pilar Flores Asenjo & Alfonso Rosa-García, 2020. "Incentives to Open Access: Perspectives of Health Science Researchers," Publications, MDPI, vol. 8(2), pages 1-17, May.
    3. Alexander Cuntz & Frank Mueller-Langer & Alessio Muscarnera & Prince C. Oguguo & Marc Scheufen, 2024. "Access to science and innovation in the developing world," WIPO Economic Research Working Papers 78, World Intellectual Property Organization - Economics and Statistics Division.
    4. Shufen Tang & Yuqing Zheng & Taiping Li & Li Zhou, 2021. "The hold‐up problem in China's broiler industry: Empirical evidence from Jiangsu Province," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 69(4), pages 539-554, December.
    5. Wang, Shiying & Chen, Huimiao & Wu, Desheng, 2019. "Regulating platform competition in two-sided markets under the O2O era," International Journal of Production Economics, Elsevier, vol. 215(C), pages 131-143.
    6. Philipp Kohlgruber & Christoph Kuzmics, 2017. "The distribution of article quality and inefficiencies in the market for scientific journals," Graz Economics Papers 2017-11, University of Graz, Department of Economics.
    7. Lisa Matthias & Najko Jahn & Mikael Laakso, 2019. "The Two-Way Street of Open Access Journal Publishing: Flip It and Reverse It," Publications, MDPI, vol. 7(2), pages 1-29, April.
    8. Mueller-Langer, Frank & Scheufen, Marc & Waelbroeck, Patrick, 2020. "Does online access promote research in developing countries? Empirical evidence from article-level data," Research Policy, Elsevier, vol. 49(2).
    9. Stephan Puehringer & Johanna Rath & Teresa Griesebner, 2021. "The political economy of academic publishing: On the commodification of a public good," PLOS ONE, Public Library of Science, vol. 16(6), pages 1-21, June.
    10. Carmen López-Vergara & Pilar Flores Asenjo & Alfonso Rosa-García, 2021. "Why Open Access: Economics and Business Researchers’ Perspectives," Publications, MDPI, vol. 9(3), pages 1-17, August.
    11. Mark J. McCabe & Christopher M. Snyder, 2021. "Cite unseen: Theory and evidence on the effect of open access on cites to academic articles across the quality spectrum," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(8), pages 1960-1979, December.

    More about this item

    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

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