RE: Confidentiality clause is back in at Nature

[<Gary.Lawrence@ucop.edu>]

I can't say that I have any knowledge of the likely effect of 
pricing transparency on the prices libraries might pay for 
journals, but I know enough econ to understand that Peter's 
analogy is backward.  In his example, a buyer can achieve the 
most favorable pricing through competition among willing sellers 
when each seller is unaware of its competitors' offers (verily, 
this principle is the basis of antitrust law, is it not?).

How many competing sellers are there for, say, Elsevier journals?

If we reverse the analogy, then, might not transparent pricing in 
fact favor the buyer?

________________________________

Gary S. Lawrence, DLIS
Director, Systemwide Library Planning
University of California, Office of the President
1111 Franklin Street, 11th Floor
Oakland, CA 94607-5200
Voice: (510) 987-9461
Fax: (510) 587-6401
Internet: gary.lawrence@ucop.edu
Web:   http://www.slp.ucop.edu

________________________________

> -----Original Message-----
> From: owner-liblicense-l@lists.yale.edu [mailto:owner-liblicense-
> l@lists.yale.edu] On Behalf Of Peter Banks
> Sent: Thursday, September 28, 2006 12:22 PM
> To: liblicense-l@lists.yale.edu
> Subject: Re: Confidentiality clause is back in at Nature
>
> While I understand the desire for pricing transparency, I can't
> think of an industry where it is practiced, or understand the
> value to the buyer, since it often favors the seller.
>
> When I was a publisher and purchasing printing, composition, or
> Web services, there was no openness in pricing. I am sure in
> other services purchased by universities, from IS services to
> construction, contracts are awarded in response to RFPs, often on
> a closed bid basis.
>
> Perhaps there are economists on the listserv who can comment on
> whether open or hidden pricing trends lower pricing for buyers.
> My experience with printing services is that closed pricing
> drives down prices, as printers cut margins to the minimum or
> bundle services to gain business. I would think that librarians
> have the greatest bargaining power when they are not operating
> from a take-it-or-leave-it menu of prices.
>
> Peter Banks
> Banks Publishing
> Publications Consulting and Services
> pbanks@bankspub.com
>
>
> On 9/25/06 6:21 PM, "Debi Baker" <ddbaker@uoregon.edu> wrote:
>
>> Good luck, Rick!  I've had to speak to such a lawyer and found
>> the major concern was based on his own actions during law
>> school where he violated fair use.  Seems we are seeing a lot
>> more of this, particularly in the newly-minted JDs.
>>
>> Regards,
>>
>> ********************************************************************
>> Debi Baker    Orbis Cascade Alliance
>> Projects Manager   ddbaker@uoregon.edu
>> 1299 University of Oregon               voice: (541) 346-1832
>> Eugene, OR 97403-1299                   fax:   (541) 346-1968
>> ********************************************************************