IDEAS home Printed from https://ideas.repec.org/p/bge/wpaper/270.html
   My bibliography  Save this paper

Bundling Electronic Journals and Competition among Publishers

Author

Listed:
  • Doh-Shin Jeon
  • Domenico Menicucci

Abstract

Site licensing of electronic journals has been revolutionizing the way academic information is distributed. However, many librarians are concerned about the possibility that commercial publishers might abuse site licensing by practicing bundling. In this paper, we analyze how bundling afects journal pricing in the market of scientific, technical and medical (STM) electronic journals and offer a novel insight on the bundling of a large number of information goods. We find that (i) when bundling is prohibited, surprisingly, industry concentration does not affect prices (ii) when bundling is allowed, each publisher finds bundling profitable and bundling increases industry profits while reducing social welfare and (iii) any merger among publishers already active in the market is profitable but reduces social welfare.

Suggested Citation

  • Doh-Shin Jeon & Domenico Menicucci, 2005. "Bundling Electronic Journals and Competition among Publishers," Working Papers 270, Barcelona Graduate School of Economics.
  • Handle: RePEc:bge:wpaper:270
    as

    Download full text from publisher

    File URL: https://www.barcelonagse.eu/sites/default/files/working_paper_pdfs/270.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Gilles Chemla & Gilles Chemla, 2003. "Downstream Competition, Foreclosure and Vertical Integration," Post-Print halshs-00679847, HAL.
    2. repec:dau:papers:123456789/6313 is not listed on IDEAS
    3. Theodore C. Bergstrom, 2001. "Free Labour for Costly Journals?," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 183-198, Fall.
    4. G. Chemla, 1999. "Downstream competition, foreclosure, and vertical integration," THEMA Working Papers 99-18, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    5. repec:cdl:ucsbec:16-01 is not listed on IDEAS
    6. Yannis Bakos & Erik Brynjolfsson, 1999. "Bundling Information Goods: Pricing, Profits, and Efficiency," Management Science, INFORMS, vol. 45(12), pages 1613-1630, December.
    7. Barry Nalebuff, 2004. "Bundling as an Entry Barrier," The Quarterly Journal of Economics, Oxford University Press, vol. 119(1), pages 159-187.
    8. Mark Armstrong, 1999. "Price Discrimination by a Many-Product Firm," Review of Economic Studies, Oxford University Press, vol. 66(1), pages 151-168.
    9. R. Preston McAfee & John McMillan & Michael D. Whinston, 1989. "Multiproduct Monopoly, Commodity Bundling, and Correlation of Values," The Quarterly Journal of Economics, Oxford University Press, vol. 104(2), pages 371-383.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hurkens, Sjaak & Jeon, Doh-Shin & Menicucci, Domenico, 2016. "Leveraging Dominance with Credible Bundling," CEPR Discussion Papers 11304, C.E.P.R. Discussion Papers.
    2. Mark J. McCabe & Christopher M. Snyder, 2016. "Open Access as a Crude Solution to a Hold-up Problem in the Two-Sided Market for Academic Journals," NBER Working Papers 22220, National Bureau of Economic Research, Inc.
    3. 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.
    4. Mueller-Langer, Frank & Watt, Richard, 2012. "Optimal pricing and quality of academic journals and the ambiguous welfare effects of forced open access: a two-sided model," MPRA Paper 40191, University Library of Munich, Germany.
    5. Doh-Shin Jeon & Domenico Menicucci, 2012. "Bundling and Competition for Slots," American Economic Review, American Economic Association, vol. 102(5), pages 1957-1985, August.
    6. Hurkens, Sjaak & Jeon, Doh-Shin & Menicucci, Domenico, 2013. "Dominance and Competitive Bundling," TSE Working Papers 13-423, Toulouse School of Economics (TSE), revised May 2018.
    7. Doh-Shin Jeon & Jean-Charles Rochet, 2010. "The Pricing of Academic Journals: A Two-Sided Market Perspective," American Economic Journal: Microeconomics, American Economic Association, vol. 2(2), pages 222-255, May.
    8. Jay Pil Choi & Doh-Shin Jeon, 2016. "A Leverage Theory of Tying in Two-Sided Markets," CESifo Working Paper Series 6073, CESifo Group Munich.
    9. Doh-Shin Jeon & Domenico Menicucci, 2009. "Bundling and competition for slots: Sequential pricing," Economics Working Papers 1168, Department of Economics and Business, Universitat Pompeu Fabra.
    10. Mark Armstrong, 2015. "Opening Access to Research," Economic Journal, Royal Economic Society, vol. 125(586), pages 1-30, August.
    11. Aaron S. Edlin & Daniel L. Rubinfeld, 2005. "The Bundling of Academic Journals," American Economic Review, American Economic Association, vol. 95(2), pages 441-446, May.
    12. Doh-Shin Jeon & Domenico Menicucci, 2009. "Bundling and competition for slots: On the portfolio effects of bundling," Economics Working Papers 1152, Department of Economics and Business, Universitat Pompeu Fabra, revised Jul 2009.
    13. Mark Armstrong, 2010. "Collection Sales: Good Or Bad For Journals?," Economic Inquiry, Western Economic Association International, vol. 48(1), pages 163-176, January.
    14. Mark McCabe, 2004. "Information goods and endogenous pricing strategies: the case of academic journals," Economics Bulletin, AccessEcon, vol. 12(10), pages 1-11.
    15. McCabe, Mark J. & Nevo, Aviv & Rubinfeld, Daniel L., 2006. "The Pricing of Academic Journals," Berkeley Olin Program in Law & Economics, Working Paper Series qt13d1h835, Berkeley Olin Program in Law & Economics.
    16. repec:ebl:ecbull:v:12:y:2004:i:10:p:1-11 is not listed on IDEAS
    17. Jeon, Doh-Shin & Menicucci, Domenico, 2008. "Money, fame and the allocation of talent: Brain drain and the institution of science," Journal of Economic Behavior & Organization, Elsevier, vol. 66(3-4), pages 558-581, June.
    18. Haucap, Justus & Loebert, Ina & Spindler, Gerald & Thorwarth, Susanne, 2016. "Ökonomische Auswirkungen einer Bildungs- und Wissenschaftsschranke im Urheberrecht," DICE Ordnungspolitische Perspektiven 86, University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    19. 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.

    More about this item

    Keywords

    Bundling; Journal Pricing; Site Licensing; Mergers;

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bge:wpaper:270. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bruno Guallar). General contact details of provider: http://edirc.repec.org/data/bargses.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.