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Academic Journals as Two-Sided Platforms: Empirical Evidence from Data on French Libraries

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  • Ivaldi, Marc
  • Dubois, Pierre
  • Hernandez-Perez, Adriana

Abstract

This paper analyzes the demand and cost structure of the French market of academic journals, taking into account its intermediary role between researchers, who are both producers and consumers of knowledge. This two sidedness feature will echoes similar problems already observed in electronic markets - payment card systems, video game consoles, etc. - such as the chicken and egg problem, where readers won?t buy a journal if they do not expect its articles to be academically relevant and researchers, that live under the mantra 'Publish or Perish', will not submit to a journal with either limited public reach or weak reputation. After the merging of several databases, we estimate the aggregated nested logit demand system combined simultaneously with a cost function. We identify the structural parameters of this market and find that price elasticities of demand are quite large and margins relatively low, indicating that this industry experiences competitive constraints.

Suggested Citation

  • Ivaldi, Marc & Dubois, Pierre & Hernandez-Perez, Adriana, 2006. "Academic Journals as Two-Sided Platforms: Empirical Evidence from Data on French Libraries," CEPR Discussion Papers 5990, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:5990
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    Cited by:

    1. Ricardo Ribeiro, 2008. "Market Dominance and Barriers to Competition in Financial Trading Venues," Working Papers 08-35, NET Institute, revised Oct 2008.

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    More about this item

    Keywords

    Media industry; Two-sided platforms; Differentiated products models;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

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