The Impact of the German 'DEAL' on Competition in the Academic Publishing Market

33 Pages Posted: 31 Mar 2021

See all articles by Justus Haucap

Justus Haucap

Heinrich Heine University Dusseldorf - Department of Economics; German Institute for Economic Research (DIW Berlin)

Nima Moshgbar

Heinrich Heine University Dusseldorf

W. Benedikt Schmal

Walter Eucken Institute; Düsseldorf Institute for Competition Economics (DICE); KU Leuven - Department of Managerial Economics, Strategy, and Innovation

Date Written: 2021

Abstract

The German DEAL agreements between German universities and research institutions on the one side and Springer Nature and Wiley on the other side facilitate easy open access publishing for researchers located in Germany. We use a dataset of all publications in chemistry from 2016 to 2020 and apply a difference-in-differences approach to estimate the impact on eligible scientists’ choice of publication outlet. We find that even in the short period following the conclusion of these DEAL agreements, publication patterns in the field of chemistry have changed, as eligible researchers have increased their publications in Wiley and Springer Nature journals at the cost of other journals. From that two related competition concerns emerge: First, academic libraries may be, at least in the long run, left with fewer funds and incentives to subscribe to non-DEAL journals published by smaller publishers or to fund open access publications in these journals. Secondly, eligible authors may prefer to publish in journals included in the DEAL agreements, thereby giving DEAL journals a competitive advantage over non-DEAL journals in attracting good papers. Given the two-sided market nature of the academic journal market, these effects may both further spur the concentration process in this market.

JEL Classification: D430, I230, L860

Suggested Citation

Haucap, Justus and Haucap, Justus and Moshgbar, Nima and Schmal, Wolfgang Benedikt, The Impact of the German 'DEAL' on Competition in the Academic Publishing Market (2021). CESifo Working Paper No. 8963, Available at SSRN: https://ssrn.com/abstract=3815451 or http://dx.doi.org/10.2139/ssrn.3815451

Justus Haucap (Contact Author)

German Institute for Economic Research (DIW Berlin) ( email )

Mohrenstraße 58
Berlin, 10117
Germany

Heinrich Heine University Dusseldorf - Department of Economics ( email )

Duesseldorf
Germany

HOME PAGE: http://www.dice.uni-duesseldorf.de

Nima Moshgbar

Heinrich Heine University Dusseldorf ( email )

Universitätsstrasse 1
Duesseldorf, DE NRW 40225
Germany

Wolfgang Benedikt Schmal

Walter Eucken Institute ( email )

Goethestrasse 10
Freiburg im Breisgau, Baden-Württemberg D-79100
Germany

Düsseldorf Institute for Competition Economics (DICE) ( email )

Universitätsstrasse 1
Duesseldorf, DE NRW 40225
Germany

HOME PAGE: http://sites.google.com/view/wbschmal

KU Leuven - Department of Managerial Economics, Strategy, and Innovation ( email )

Naamsestraat 69 bus 3500
Leuven, 3000
Belgium

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