NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
loading...

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 Paper No. 22220
Issued in May 2016
NBER Program(s):Law and Economics, Productivity, Innovation, and Entrepreneurship

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.

download in pdf format
   (299 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w22220

Users who downloaded this paper also downloaded* these:
Murray, Aghion, Dewatripont, Kolev, and Stern w14819 Of Mice and Academics: Examining the Effect of Openness on Innovation
Murray and Stern w11465 Do Formal Intellectual Property Rights Hinder the Free Flow of Scientific Knowledge? An Empirical Test of the Anti-Commons Hypothesis
Kitchens and Jaworski w22254 Ownership and the Price of Residential Electricity: Evidence from the United States, 1935-1940
Hamermesh w21754 Citations in Economics: Measurement, Uses and Impacts
Almond and Currie w15827 Human Capital Development Before Age Five
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us