The economics of professional journal pricing

The problems of excessive inflation and price discrimination in journal pricing continue to plague libraries. In analyzing the causes of the current crisis, the authors review and evaluate previous contributions to the literature on journal pricing with particular emphasis on the three types of price discrimination practiced by journal publishers. The authors suggest that the monopoly power of commercial publishers, combined with a third-party payment system, are at the heart of the problem. They suggest solutions that involve providing appropriate incentives to journal users, adoption of more equitable pricing systems, and employing the potential monopoly purchasing power of library associations to lower prices.