Information goods and endogenous pricing strategies: the case of academic journals

Mark McCabe ()
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Mark McCabe: Georgia Institute of Technology

Economics Bulletin, 2004, vol. 12, issue 10, 1-11

Abstract: I model journal pricing behavior in a portfolio demand environment and consider how the ongoing transition from print to digital distribution has lead to endogenous changes in pricing behavior. Specifically, when choosing whether or not to price discriminate, publishers compare the benefits of selling more content to each set of buyers against the associated additional costs. As the distribution costs decline, price discrimination becomes more attractive. However, since this cost decline also s new entry opportunities, incumbent firms may also need to bundle their journals to avoid displacement of individual titles.

Keywords: bundling (search for similar items in EconPapers)
JEL-codes: L0 L8 (search for similar items in EconPapers)
Date: 2004-10-28
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Citations: View citations in EconPapers (20)

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