Optimal pricing and quality of academic journals and the ambiguous welfare effects of forced open access: a two-sided model

Mueller-Langer, Frank and Watt, Richard (2012): Optimal pricing and quality of academic journals and the ambiguous welfare effects of forced open access: a two-sided model.

Abstract

We analyse 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 relationship between readers and authors in a journal. In contrast to previous literature, we firstly show that there exist scenarios in which open access is a feature of high-quality journals. Second, we find that removal of copyright (and thus forced open access) decreases journal profits but has ambiguous social welfare effects.

• Item Type: MPRA Paper
• Language: English
• Keywords: Open access, academic journals, two-sided market, ambiguous welfare effects of removal of copyright
• Subjects: L - Industrial Organization > L8 - Industry Studies: Services > L82 - Entertainment ; Media; L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L11 - Production, Pricing, and Market Structure ; Size Distribution of Firms; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O34 - Intellectual Property and Intellectual Capital

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