Why Do Textbooks Cost So Much?

April 4, 2008
By Charlotte Allen

Excerpt:
Welcome to the world of textbook pricing, where, it would seem, the usual market forces don't apply. The textbook market in no way resembles the trade book market, in which the same person - the consumer - desires the book (the new War and Peace, the latest diet guide or whatever), acquires it, and pays for it, so that price points and competition are crucial. What the textbook market resembles most is the market for health care, in which one entity (the physician/the professor) desires - that is, assigns or prescribes - the product, a second entity (the patient/the student) consumes it, and a third set of entities (insurance companies/parents) foot the bill. Spiraling prices for textbooks, like spiraling medical costs, seem to be the inevitable result. A General Accounting Office report in 2005 noted that textbook prices rose 186 percent in the U.S. from 1986 to 2004, compared to only a 3 percent rise in other prices over the same period and a 7 percent rise in average college tuition and fees. The seemingly out-of-control price increases have prompted laws in six states and pending bills in at least four others - plus a measure passed by the House of Representatives on Feb. 7 - that aim to regulate the way in which textbooks are marketed so as to lower costs to students.
the rest image