Optimal Pricing and Quality of Academic Journals and the Ambiguous Welfare Effects of Forced Open Access: A Two-Sided Model

Mueller-Langer, Frank; Watt, Richard

doi:10.2139/ssrn.2045956

Abstract

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Optimal Pricing and Quality of Academic Journals and the Ambiguous Welfare Effects of Forced Open Access: A Two-Sided Model

Frank Mueller-Langer

Max Planck Institute for Intellectual Property and Competition Law; International Max Planck Research School for Competition and Innovation (IMPRS-CI)

University of Canterbury - Economics and Finance; The Society for Economic Research on Copyright Issues (SERCI)

April 25, 2012

TILEC Discussion Paper No. 2012-019

Abstract:
We analyze 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.

Number of Pages in PDF File: 34

Keywords: academic journal, two-sided market, open access, welfare effects, copyright

JEL Classification: L11, L82, O34

working papers series

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Date posted: April 26, 2012

Suggested Citation

Mueller-Langer, Frank and Watt, Richard, Optimal Pricing and Quality of Academic Journals and the Ambiguous Welfare Effects of Forced Open Access: A Two-Sided Model (April 25, 2012). TILEC Discussion Paper No. 2012-019. Available at SSRN: http://ssrn.com/abstract=2045956 or http://dx.doi.org/10.2139/ssrn.2045956

Contact Information

Frank Mueller-Langer (Contact Author) Max Planck Institute for Intellectual Property and Competition Law ( email ) Marstallplatz 1 Munich, 80539 Germany HOME PAGE: http://www.ip.mpg.de/en/pub/academic_body/acad_staff/frank_mueller-langer.cfm
International Max Planck Research School for Competition and Innovation (IMPRS-CI) ( email ) Germany HOME PAGE: http://www.imprs-ci.ip.mpg.de/en/pub/news.cfm?varnews=47356
Richard Watt University of Canterbury - Economics and Finance ( email ) Private Bag 4800 Christchurch New Zealand
The Society for Economic Research on Copyright Issues (SERCI) ( email ) Apartado de correos 1100 Palma de Mallorca, 08080 Spain

Abstract

Optimal Pricing and Quality of Academic Journals and the Ambiguous Welfare Effects of Forced Open Access: A Two-Sided Model

Frank Mueller-Langer

Richard Watt

Date posted: April 26, 2012

Suggested Citation

Contact Information

Frank Mueller-Langer (Contact Author)

Richard Watt