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bundling electronic journals and competition among publishers

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  • domenico menicucci
  • doh-shin jeon

Abstract

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

Suggested Citation

  • domenico menicucci & doh-shin jeon, 2004. "bundling electronic journals and competition among publishers," Econometric Society 2004 Far Eastern Meetings 720, Econometric Society.
    • Handle: RePEc:ecm:feam04:720
    as

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    References listed on IDEAS

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    1. Gilles Chemla, 2003. "Downstream Competition, Foreclosure, and Vertical Integration," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 12(2), pages 261-289, June.
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    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • 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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