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RE: Usage-based pricing (was ebooks in libraries a thorny problem)

Not to mention the temptation for a publisher to have local 
"plants" use the materials to up the maximum tender.

-----Original Message-----
From: owner-liblicense-l@lists.yale.edu
[mailto:owner-liblicense-l@lists.yale.edu] On Behalf Of Eric Hellman
Sent: Wednesday, April 14, 2010 4:34 PM
To: liblicense-l@lists.yale.edu
Subject: Re: Usage-based pricing (was ebooks in libraries a thorny problem)

As I said, the trick is to control the budget. Consider this
variant. Suppose a library system put out a tender for ebook
supply totalling 1 million dollars per year. Publishers
participating in the tender would be paid a share of the $1M
based on usage of the books they supplied.

Please ignore for the moment the technical difficulties of
measuring usage and consider whether such a system would provide
the correct economic incentives. The publishers would have
incentives to get their stuff used. The library would get a fixed
expense. No one would have their usage rationed.

I would also argue that many OA models are usage-based pricing,
where the "price" is advertising exposure.


Eric Hellman
President, Gluejar, Inc.
Montclair, NJ 07042