This paper explores the scholarly communication 'industry' using it product
systems approach, scopes and sizes the Australian scholarly communication
product system, and examines the economics behind its operation. We find th
at the set of interrelationships between the market characteristics of info
rmation and cost structures, patterns of demand and acquisition practices,
and the forces encouraging increasing scholarly output go a long way toward
s explaining the operation of the system and the genesis of the crisis. Bas
ed on our economic analysis of the system, we outline broad market conformi
ng and market distorting approaches to alleviating the crisis.