Scholarly journals are sometimes regarded as substitutes even though each provides unique content

Substitution—customers' ability to choose among comparable products—is a key factor in economic competition, as it prevents any one seller from charging inordinately high prices. If two products are sufficiently similar the customer's perspective, an increase price of will generally drive customers other, thereby reducing overall revenue for company that charges higher It is not difficult find substitutes within most consumer markets. For instance, auto manufacturers offer each size/price/lifestyle category (Björk, 2021). However, economists adopt no-substitution perspective with regard scholarly journals—an assumption because particular journals and full-text databases unique their content, they cannot be regarded (e.g., Edwards & Shulenburger, 2003; Grossmann Brembs, 2019; Haucap et al., 2021; Tennant 2018). In this scenario, scholar requires access every relevant paper; paper journal does reduce need other papers journals. This has been used explain prices When substitution possible, publishers face little competition therefore lack strong incentives keep low. extreme case, publisher monopoly on its own content. essay draws recent earlier research challenge or content substitutes. While such may reasonable top institutions, there reason believe valid US colleges universities. The argument introduced here implies publishers/vendors, discrimination practiced by many them—commercial publishers, particular—may have arisen response different collection development strategies pursued types conventional pricing based faculty serious scholars only consumers literature. Because individual likely article project, conclude them, no can substitute another. institutions education serve students well faculty, some focused almost exclusively undergraduate education. Most undergraduates expected read cite all literature, course assignments even specify number articles required use. Within context, directly influence student must obtain. good another, longer realistic. There also second, more fundamental against perspective—that fails recognize distinction between (those who literature) make selection purchasing decisions academic libraries). primary librarians, whose vary systematically represent universities vs. colleges). Moreover, discrimination—the practice characteristics—can explained at least partly systematic differences libraries' strategies. Price feature for-profit market. deals negotiated libraries (or library consortia) commercial sometimes incorporate sophisticated forms institutional characteristics enrolment, budget, past years' expenditures, degrees granted, subject areas. United States, especially Carnegie classification, which represents type institution—major university, doctoral master's liberal arts college, comprehensive bachelor's institution, two-year college. particular, we clear ~150 R1 (doctoral very activity) widespread but less common non-profit publishers. Comprehensive data compiled Bergstrom al. (2014, appendix table SI 17) show while charge relatively when selling low four-year Among average cost publisher's database 2.2 times provider's database. categories, corresponding figures range than 0.4 0.9, indicating lower commercially published those non-profits (Bergstrom 2014; Walters, 2022; Walters Markgren, 2021b). Overall, makes publishers' expensive inexpensive everyone else. possible offering outside group evolved distinctive adopted To understand why, should first three important libraries. First, collect extensively, broad subjects languages. dentistry agriculture great importance major university needed colleges. Second, tend intensively well; area, list wanted journals—journals essential teaching. A third difference lies set expectation held library. Faculty foremost expectations. librarians' goal provide immediate journal. contrast, unreasonable expectation. At these often (a) adequate proportion perhaps minimum target rely delayed others through mechanisms interlibrary loan; (b) acquire fill specific niches without included ‘We either EBSCO Business Source Ultimate ProQuest One Business’). With limited goals, librarians view discipline substitutes, behave accordingly making negotiating fact, methods documented literature since 1973 involved explicit comparison attributes per journal, citation, download (Walters 2020, 1 supplementary A). These do just allow substitution; premise take place basis cost-effectiveness. Arguably, require substitution, afford framework, credible threats cancel acquire) product too high. Substitution potential benefit (which obtain journals) vendors gain subscribers pay prices). advantages apparent where account 6% degree-granting (National Center Education Statistics, 2022). Economic publishing might realistic understanding factors environment. Investigations grounded invalid assumptions yield biased misleading results. researchers customers, recognizing librarians—not faculty—are decision-makers actors. Particular information databases) though Customers (librarians decisions) (end users) not. Certain (such institutions) universities) students) faculty) assertions seem obvious overlooked study market structure, discrimination. Although McCabe described typical librarian's decades ago (McCabe, 2002; Nevo 2005), authors ignored ways actually evaluated selected Björk, Aside his co-authors, consider extent open preprints final versions (Armstrong, 2015; Migheli Ramello, 2014). Björk (2021) avoids discussion role, customers. implication outlined tailored needs help bring would subscribe if were charged. fully aware situation. same time, evidence personnel, data, resources carefully evaluate elasticity demand effects substitution—that is, larger (Walters, Smaller, specialized benefits reaching traditional core markets universities), expertise determine degree best needs. Non-profit yet large-scale want practices avoid cancellations maintain era static shrinking budgets. More generally, better adopted, consciously unconsciously, decision-makers. Some 2021a) explored conversations current After all, know whether area useful how institution determines made. points presented here—that results else—is mainly aggregated 2014, 17). reason, institutions—or areas institutions—may exceptions rule. institute technology, natural sciences engineering social humanities. Publishers advantage situation correctly identifying holds true. Conversely, negotiate effectively convincing certain right cusp status. example, directors inclined join major-university consortia gained level prestige—but doing so, signal relative inflexibility goals (i.e., perspective). American system highly stratified, sharper States elsewhere. fewer 12% colleges/universities history doctorates field; Kingdom, equivalent value 36% UCAS, Further relationships hold nations well. Finally, worthwhile examine principles apply extended kinds online resources—to purely bibliographic databases, statistical reference resources, example. products, various distinct William H.