Optimal Pricing and Quality of Academic Journals and the Ambiguous Welfare Effects of Forced Open Access: A Two-Sided Model

Munich Discussion Paper No. 2013-10

28 Pages Posted: 26 Aug 2013

See all articles by Frank Mueller-Langer

Frank Mueller-Langer

University of the Bundeswehr Munich; Max Planck Institute for Innovation and Competition; European Commission, Joint Research Center

Richard Watt

University of Canterbury - Economics and Finance; The Society for Economic Research on Copyright Issues (SERCI)

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Date Written: August 21, 2013

Abstract

We analyze optimal pricing and quality of a monopolistic journal and the optimality of open access in a two-sided model. The predominant aspect of the model that determines the quality levels at which open access is optimal is the nature of the (non-linear) externalities between readers and authors in a journal. We show that there exist scenarios in which open access is a feature of high-quality journals. Besides, we …find that the removal of copyright (and thus forced open access) will likely increase both readership and authorship, will decrease journal profi…ts, and may increase social welfare.

Keywords: Two-sided markets, academic journals, open access, removal of copyright, welfare effects

JEL Classification: L11, L82, O34

Suggested Citation

Mueller-Langer, Frank and Watt, Richard, Optimal Pricing and Quality of Academic Journals and the Ambiguous Welfare Effects of Forced Open Access: A Two-Sided Model (August 21, 2013). Munich Discussion Paper No. 2013-10, Available at SSRN: https://ssrn.com/abstract=2316201 or http://dx.doi.org/10.2139/ssrn.2316201

Frank Mueller-Langer (Contact Author)

University of the Bundeswehr Munich ( email )

Munich
Germany

Max Planck Institute for Innovation and Competition ( email )

Munich
Germany

European Commission, Joint Research Center

Seville
Spain

Richard Watt

University of Canterbury - Economics and Finance ( email )

Private Bag 4800
Christchurch
New Zealand

The Society for Economic Research on Copyright Issues (SERCI) ( email )

Apartado de correos 1100
Palma de Mallorca, 08080
Spain

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