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

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  • Mark J Mccabe

    (SKEMA Business School - SKEMA Business School, GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur)

  • Christopher M Snyder

    (Dartmouth College [Hanover])

Abstract

We analyze a model in which journals cannot commit to subscription fees when authors (who prefer low subscription fees because this boosts readership) make submission decisions. A holdup problem arises, manifested as excessive subscription fees. Open access is a crude attempt to avoid hold up by eliminating subscription fees. We assess the profitability and efficiency of traditional relative to open-access journals in a monopoly model (with extensions to nonprofit, bundled, hybrid, and competing journals). We apply the theory to understand the evolving market for academic journals in the Internet age and policies currently being debated such as an open-access mandate.

Suggested Citation

  • 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," Post-Print halshs-01948335, HAL.
    • Handle: RePEc:hal:journl:halshs-01948335
    DOI: 10.1111/joie.12167
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01948335
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    Cited by:

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    2. Alexander Cuntz & Frank Mueller-Langer & Alessio Muscarnera & Prince C. Oguguo & Marc Scheufen, 2024. "Access to science and innovation in the developing world," WIPO Economic Research Working Papers 78, World Intellectual Property Organization - Economics and Statistics Division.
    3. Stephan Puehringer & Johanna Rath & Teresa Griesebner, 2021. "The political economy of academic publishing: On the commodification of a public good," PLOS ONE, Public Library of Science, vol. 16(6), pages 1-21, June.
    4. Tang, Shufen & Zheng, Yuqing & Li, Taiping & Zhou, Li, 2021. "The Hold-up Problem in China’s Broiler Industry: Empirical Evidence from Jiangsu Province," 2021 ASAE 10th International Conference (Virtual), January 11-13, Beijing, China 329410, Asian Society of Agricultural Economists (ASAE).
    5. Oliver Budzinski & Thomas Grebel & Jens Wolling & Xijie Zhang, 2020. "Drivers of article processing charges in open access," Scientometrics, Springer;Akadémiai Kiadó, vol. 124(3), pages 2185-2206, September.
    6. Lisa Matthias & Najko Jahn & Mikael Laakso, 2019. "The Two-Way Street of Open Access Journal Publishing: Flip It and Reverse It," Publications, MDPI, vol. 7(2), pages 1-29, April.
    7. Mueller-Langer, Frank & Scheufen, Marc & Waelbroeck, Patrick, 2020. "Does online access promote research in developing countries? Empirical evidence from article-level data," Research Policy, Elsevier, vol. 49(2).
    8. Shufen Tang & Yuqing Zheng & Taiping Li & Li Zhou, 2021. "The hold‐up problem in China's broiler industry: Empirical evidence from Jiangsu Province," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 69(4), pages 539-554, December.
    9. Carmen López-Vergara & Pilar Flores Asenjo & Alfonso Rosa-García, 2021. "Why Open Access: Economics and Business Researchers’ Perspectives," Publications, MDPI, vol. 9(3), pages 1-17, August.
    10. Carmen López-Vergara & Pilar Flores Asenjo & Alfonso Rosa-García, 2020. "Incentives to Open Access: Perspectives of Health Science Researchers," Publications, MDPI, vol. 8(2), pages 1-17, May.
    11. Wang, Shiying & Chen, Huimiao & Wu, Desheng, 2019. "Regulating platform competition in two-sided markets under the O2O era," International Journal of Production Economics, Elsevier, vol. 215(C), pages 131-143.
    12. Philipp Kohlgruber & Christoph Kuzmics, 2017. "The distribution of article quality and inefficiencies in the market for scientific journals," Graz Economics Papers 2017-11, University of Graz, Department of Economics.

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    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

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