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Open Access as a Crude Solution to a Hold-up Problem in the Two-Sided Market for Academic Journals / Mark J. McCabe, Christopher M. Snyder.

NBER Working papers Available online

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Format:
Book
Author/Creator:
McCabe, Mark J.
Contributor:
National Bureau of Economic Research.
Snyder, Christopher M.
Series:
Working Paper Series (National Bureau of Economic Research) no. w22220.
NBER working paper series no. w22220
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2016.
Summary:
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.
Notes:
Print version record
May 2016.

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