The Textbook Market is Broken
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The definition of 'market' is not simple, especially when speaking in global terms. Commodity markets facilitate the trade of raw products, stock markets do the same with corporate shares; and of course we all know the purpose of physical retail markets. Some markets include a barter system of determining prices, others are predetermined. Yet the underlying process for every kind of market relies on sellers offering goods or services in exchange for money from a buyer.
All markets offer the buyer a choice in making the purchase; either in price, location of purchase, need, manufacturer and so on. Price can be highly variable, as well as the perception of choice. For example, a buyer may enter a store to purchase milk and think the price is too high. Yet they feel their need for the milk is so immediate that a trip to another location (where it may be cheaper) is not a choice. This example illustrates three components of choice in a market: price, competition and need. The textbook market does not operate within the parameters of these components.
To begin with, the buyer does not have a choice of product. The textbook a student must purchase for a course is decided by faculty members, and generally only one publisher has rights to the text, thus creating a seller's market. For this same reason, price is fixed. Need is finite as well. The student requires the textbook in order to complete coursework successfully, therefore owning it is a real need. For these reasons the seller (in this case the publisher) has disproportionate power in the market, thus the textbook market is broken.
The textbook publishing market in North America is oligopolistic, which only serves to add to the challenge of the broken market. With just five major players producing almost 80% of all post-secondary textbooks (according to a report by Dr. James Koch for the US Department of Education), there is little to drive prices down to a fair level. The chance of new publishers entering the market is unlikely, as startup costs are very high. In fact the only chance of new publishers entering the textbook market is if they are already established as a printer, but in other genres.
Anyone who has spent even one semester in post-secondary school understands the dysfunctional nature of course materials and textbooks. The above explanation is no surprise; in fact it may raise a few pulses just out of sheer frustration. Stay with us, there is an alternative to this broken market. Students are not necessarily tied into paying $1000 each semester for textbooks; there are other ways to get the right texts for a fraction of the price. Two words: textbook rental.
Many college and university student societies now offer textbook rental programs, either on a book by book basis or per course load. There are a multitude of online rental programs as well, and all of them are far more affordable than out right purchasing the textbooks. Their books are up to date current editions and accommodate all areas of study. Students are still required to purchase course materials; however that expense is still far less than buying textbooks outright. Bypass the broken textbook market; make the environmental choice, the frugal choice and the smart choice: rent your textbooks!
Article Source: Articlelogy.com
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