2. Open-Access Scholarly Publishing Malcolm Getz Vanderbilt University June 1, 2004 Malcolm Getz Vanderbilt University June 1, 2004

3. Two Questions Can open-access scholarship succeed? Should open-access scholarship succeed? The goals are to lower costs and increase access. Can open-access scholarship succeed? Should open-access scholarship succeed? The goals are to lower costs and increase access.

4. Four Topics Three Fundamental Ideas Transition from Paper to Digital Market Forces Strategies Three Fundamental Ideas Transition from Paper to Digital Market Forces Strategies

5. Three Fundamental Ideas Substitutes versus Complements Recipient versus Sender Payment Packaging and Bundling Substitutes versus Complements Recipient versus Sender Payment Packaging and Bundling

6. From Paper to Digital Cost to Universities in 2002 Library subscription fees, average $5,370,000 Library processing and storage, perhaps $1,110,000 Cost to Universities in 2002 Library subscription fees, average $5,370,000 Library processing and storage, perhaps $1,110,000

7. ItemPrint First Copy$1,840 Distribution320 Accounting240 Profit1,290 Other Serials1,680 Publication Total $5,370 Annual Cost in $000s for a Research Library, 2002 Of 21,000 serials titles, let 10,000 be refereed academic journals. Following Bergstrom, put first copy costs at $1,840th, distribution at $320th, and accounting at $240th. Let 2,400 of the journals be high-priced commercial titles. Put profit at $1,290th. Of 21,000 serials titles, let 10,000 be refereed academic journals. Following Bergstrom, put first copy costs at $1,840th, distribution at $320th, and accounting at $240th. Let 2,400 of the journals be high-priced commercial titles. Put profit at $1,290th. A Research Library’s Expenditures on Serials

8. ItemPrint First Copy $1,84 0 Distribution320 Accounting240 Profit1,290 Other Serials1,680 Lib Processing 790 Lib Storage320 Total $6,48 0 Annual Cost in $000s for a Research Library Add $37 per serial title for library processing. Put the present value of perpetual storage of the current year of each serial at $15. Add $37 per serial title for library processing. Put the present value of perpetual storage of the current year of each serial at $15. Publication Plus Library Costs

9. Compare print to digital Replace print subscriptions with digital subscriptions. Digital subscriptions that replace print subscriptions lower the publishers’ distribution costs by $300,000. Digital subscriptions lower library storage costs by $150,000. Replace print subscriptions with digital subscriptions. Digital subscriptions that replace print subscriptions lower the publishers’ distribution costs by $300,000. Digital subscriptions lower library storage costs by $150,000.

10. ItemPrintDigitaldifference First Copy$1,840 $0 Distribution32020$300 Accounting240 0 Profit1,290 0 Other Serials1,680 0 Lib Processing790 0 Lib Storage320170150 Total$6,480$6,030$450 Annual Cost in $000s for a Research Library Print to Digital

11. Digital Subscription to Open-Access Lower accounting costs because transactions are with authors rather than with readers. Lower library processing cost with universal free access on the Internet. Lower accounting costs because transactions are with authors rather than with readers. Lower library processing cost with universal free access on the Internet. Open-access means that authors pay page charges to journals that are available without charge on the Internet.

12. ItemPrintDigitalOpendifference First Copy$1,840 $0 Distribution32020 0 Accounting240 12228 Profit1,290 0 Other Serials1,680 0 Lib Processing 790 420370 Lib Storage320170 0 Total$6,480$6,030$5,432$598 Annual Cost in $000s for a Research Library Digital to Open-access

13. Profit to Non-Profit Organize the open-access publications exclusively through non-profit publishers. Eliminate excess profit of high-priced commercial academic journals. Organize the open-access publications exclusively through non-profit publishers. Eliminate excess profit of high-priced commercial academic journals.

14. ItemPrintDigitalOpenNonProfit First Copy$1,840 Distribution32020 Accounting240 12 Profit1,290 0 Other Serials1,680 Lib Processing 790780420 Lib Storage320170 Total$6,480$6,030$5,432$4,142 Annual Cost in $000s for a Research Library Open-access to Non-profit

15. Potential Cost Savings Significant savings are possible by replacing print with digital, moving to open-access, and moving to non-profit organization. None of these savings is automatic. Significant savings are possible by replacing print with digital, moving to open-access, and moving to non-profit organization. None of these savings is automatic. Distribution$300 Storage150 Accounting228 Processing360 Profit1,290 Total$2,328 Annual Savings in $000s per Research Library

16. Citation Rates Open-access will allow anyone on the Internet to search full-text databases and retrieve page images for any purpose without charge. Use of Medline increased seven fold after it became open-access. Some 30 percent of use is by people who are not health care providers. With more adults having BAs and more, use of scholarship might increase. Open-access will allow anyone on the Internet to search full-text databases and retrieve page images for any purpose without charge. Use of Medline increased seven fold after it became open-access. Some 30 percent of use is by people who are not health care providers. With more adults having BAs and more, use of scholarship might increase.

17. Market Forces With large scale, publishers achieve market power, the ability to charge by ability-to-pay rather than cost. Elsevier’s Market Intelligence Manager looks for ways for libraries to lower operating costs so as to pay Elsevier more. Open-access could be offered by commercial publishers. With large scale, publishers achieve market power, the ability to charge by ability-to-pay rather than cost. Elsevier’s Market Intelligence Manager looks for ways for libraries to lower operating costs so as to pay Elsevier more. Open-access could be offered by commercial publishers.

18. Amount of Publication Fee American Economic Review $13,000 per article Bergstrom estimate of average $1,820 per article Public Library of Science $1,500 per article American Economic Review $13,000 per article Bergstrom estimate of average $1,820 per article Public Library of Science $1,500 per article The publication fees needed to support high- quality editing are substantial.

19. Strategies Assure quality of editing of open-access journals. Tie size of publication fee to citation rate. Limit publication fees to not-for-profit publishers. Grow open access journals as ancillaries to indices. Assure quality of editing of open-access journals. Tie size of publication fee to citation rate. Limit publication fees to not-for-profit publishers. Grow open access journals as ancillaries to indices.

20. Two Conclusions Can open-access scholarship succeed? Yes. Innovators can gain advantages. Should open-access scholarship succeed? Yes. It should offer wider access at lower cost. Can open-access scholarship succeed? Yes. Innovators can gain advantages. Should open-access scholarship succeed? Yes. It should offer wider access at lower cost.

21. Open-Access Scholarly Publishing Malcolm.Getz@Vanderbilt.Edu