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

Mark J. McCabe and Christopher Snyder

No 22220, NBER Working Papers from National Bureau of Economic Research, Inc

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.

JEL-codes: D40 L14 L31 L82 (search for similar items in EconPapers)
Date: 2016-05
New Economics Papers: this item is included in nep-com, nep-pr~, nep-mkt, nep-net and nep-sog
Note: LE PR
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Citations: View citations in EconPapers (2)

Published as Mark J. McCabe & Christopher M. Snyder, 2018. "Open Access as a Crude Solution to a Hold-Up Problem in the Two-Sided Market for Academic Journals," The Journal of Industrial Economics, vol 66(2), pages 301-349.

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Related works:
Journal Article: Open Access as a Crude Solution to a Hold‐Up Problem in the Two‐Sided Market for Academic Journals (2018)
Working Paper: Open Access as a Crude Solution to a Hold‐Up Problem in the Two‐Sided Market for Academic Journals (2018)
Working Paper: Open Access as a Crude Solution to a Hold-Up Problem in the Two-Sided Market for Academic Journals (2018)
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