Abstract

http://ssrn.com/abstract=914525
 
 

References (53)



 
 

Citations (1)



 


 



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


Mark J. McCabe


Boston University - Questrom School of Business; SKEMA Business School Sophia Antipolis Nice

Christopher M. Snyder


Dartmouth College - Department of Economics

April 12, 2016


Abstract:     
The move from traditional to open-access journals — which charge no subscription fees, only submission fees — is gaining support in academia. We analyze a two-sided-market model in which journals cannot commit to subscription fees when authors (who prefer low subscription fees because this boosts readership) make submission decisions. This leads to a hold-up problem, manifested as excessive subscription fees. Open access is a crude attempt to avoid hold up by eliminating subscription fees. We compare the efficiency and profitability of traditional versus open access under various market structures (monopoly, Bertrand competition) and extensions (non-profit journals, bundling, hybrid pricing), using our theoretical findings to understand the evolution of the market for academic journals in the Internet age.

Number of Pages in PDF File: 41

Keywords: open access, scholarly journal, two-sided market, competition

JEL Classification: L14, L82, D40, L31


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Date posted: July 14, 2006 ; Last revised: April 22, 2016

Suggested Citation

McCabe, Mark J. and Snyder, Christopher M., Open Access as a Crude Solution to a Hold-up Problem in the Two-Sided Market for Academic Journals (April 12, 2016). Available at SSRN: http://ssrn.com/abstract=914525 or http://dx.doi.org/10.2139/ssrn.914525

Contact Information

Mark J. McCabe
Boston University - Questrom School of Business ( email )
595 Commonwealth Avenue
Boston, MA MA 02215
United States
HOME PAGE: http://sites.google.com/site/markjmccabe1/home
SKEMA Business School Sophia Antipolis Nice ( email )
60 rue Dostoïevski
SKEMA Business School, Economics Department
Sophia Antipolis, 06902
France
HOME PAGE: http://sites.google.com/site/markjmccabe1/home
Christopher M. Snyder (Contact Author)
Dartmouth College - Department of Economics ( email )
301 Rockefeller Hall
Hanover, NH 03755
United States
(603) 646-0642 (Phone)
(603) 646-2122 (Fax)
HOME PAGE: http://www.dartmouth.edu/~csnyder/
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