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Sharing benefits, sharing costs: a discussion

Sharing benefits, sharing costs: a discussion. Lluís M. Anglada Consorci de Biblioteques Universitàries de Catalunya e-ICOLC Thessaloniki , 5th October 2002. Plan. Approach Some (general) observations Sharing costs: 3 situations. Important issues in “cooperative games”.

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Sharing benefits, sharing costs: a discussion

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  1. Sharing benefits,sharing costs:a discussion Lluís M. Anglada Consorci de Biblioteques Universitàries de Catalunya e-ICOLC Thessaloniki, 5th October 2002

  2. Plan • Approach • Some (general) observations • Sharing costs: 3 situations

  3. Important issues in “cooperative games” • Focusing on benefits • Always remember that you’ll win more that in an “individual game”

  4. Sharing benefits,sharing costs • Background • Budget allocation formulae • Shared maintenance of computers and union catalogues • Now, licensing • Databases • E-journals • E-books

  5. Present situation • Pricing models • Are they stable? • Benefits • Are they stable?

  6. Stable pricing models (?) • Web databases • Consortium size • e-Journals • Expenditures in print + ‘premium’ + minimum • e-Books • Simultaneous users

  7. Stable benefits (?) • Economic benefits (short term) • Savings (sometimes) and costs contention • More information (medium term) • Cross access and bundled e-journals • Intangibles (long term) • New money and lobbying

  8. Plan • Approach • Some (general) observations • Sharing costs: 3 situations

  9. Some (general) observations • Pricing model matters • Big/medium/small • Collections and size • Net or relative benefits • “Failure games”

  10. Pricing model matters • A global price for a new product • Allows ‘ex-novo’ allocation formulae • A global price determined by historical expenditure • Suggests formulae based on historical spending

  11. Libraries in a consortium • Few are big • Some are medium • A lot are small

  12. Collections and size p- expenditure Students+budget A 49.98% > 32.42% B 26.60% > 20.46% C 7.70% < 18.26% D 4.08% < 5.61% E 2.98% < 6.21% F 4.20% < 5.42% G 3.96% < 6.56% H 0.00% < 5.07% I 0.50% > 0.00%

  13. Net or relative benefits non prev. Subs. Tit npst x students A 993 27.31% B 1112 18.66% C 1343 19.52% D 1334 4.94% E 1366 7.27% F 1376 6.36% G 1370 8.00% H 1407 7.92% I 1402 0.00%

  14. Why is size important? • Because it has an effect on price • Important in the short term • Because it has an effect on usage • Important in the long term

  15. Failure games • There are a lot of allocation costs systems that are unacceptable by some of the “playing parts”

  16. Plan • Approach • Some (general) observations • Sharing costs: 3 situations

  17. Sharing costs: 3 situations • Central funding (p+e or e+p) • p+e (no central funding) • e+p (with or without central funding)

  18. A (general?) principle to share costs • Two parameters to build the formula: • Parameter A: equal shares • Parameter B: based on size • And a dynamic readjustment system if size changes

  19. Central funding (p+e or e+p) • Total or majority central funding means that almost any allocation formula will be accepted • However • We cannot rely on this kind of central funding for a long time

  20. p+e (no central funding) • The relatively low amount (compared to the print amount) of the premium-e allows agreements • But, p+e • Doesn’t allow cancellations • Doesn’t make evolution to e-only easy • Is surely transitory

  21. e+p (with or without central funding) • A: The immediate solution • B: A future model

  22. A: The immediate solution • Cost based on former print expenditure, for instance: • Print expenditure + 5%, or • Fixed cost, if print expenditure is lower than the minimum required • Immediate allocation model • Print expenditure + 5%, or • Fixed cost

  23. But... • Historical print expenditure belongs to the past, cooperative subscriptions set up a new framework • Will it make any sense to talk about “print expenditure” in 5-10 years time? • This model allows a “sub-consortium” of big and medium libraries

  24. B: A future model (?) • One part in equal shares • 20% ?, 30% ?, 40%?, 50% ? ... • One part based on size • What does “size” mean? • Dynamic readjustment system if size changes

  25. What does “size” mean? • Potential users? • Budget? • Collections? • Print expenditure? • Research activity? • Benefits as non previus subscribed titles? • Benefits as (Npst x potential users)? • Usage?

  26. CBUC formula for e-journals • 50% based on historical print expenditure • 20% equal shares • 30% based on size (students + budget)

  27. CBUC: comparisons p- expen CBUC size ditures distribution students+butget A 49.98% 36.94% 32.42% B 26.60% 21.66% 20.46% C 7.70% 11.55% 18.26% D 4.08% 5.94% 5.61% E 2.98% 5.57% 6.21% F 4.20% 5.95% 5.42% G 3.96% 6.17% 6.56% H 0.00% 3.74% 5.07% I 0.50% 2.47% 0.00%

  28. Final considerations • “Big Deal” is a good deal if we can work at a medium-long term • A good agreement means to get all members reasonably dissatisfied • Central funding always helps

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