Economic Issues in the Networking of Library Technical Support Services

Abstract

To acquaint library administrators with the economic issues of library networking, this guide of the Western Interstate Library Coordinating Organization (WILCO) outlines possible problems of a national technical services network. Market structures such as monopolies and oligopolies can exist among automated services, brokered services, and in the relationship of the Library of Congress (LC) with these services. Cost structures of the automated service industry should be examined for existing monopolies. Librarians should take steps to prevent the barriers to competition which encourage monopolies. The LC, being a library, information center, and cataloging data market, could continuously monitor the economic effects of network activities. Possible effects of a network include: (1) service and territorial monopolies; and (2) flexibility vs. standardization of data quality. Problems associated with sharing library technical services costs among libraries, government levels and private foundations are: (1) pricing arrangements; (2) research and development financing; and (3) intergovernment fiscal relations. Empirical research is needed on the nature of costs and market structures for automated service, brokerage services and cataloging data. (KP)