A Microeconomic Analysis of the OER Textbook Market

Abstract

This article will use economic theory to understand the textbook markets better. In the last several decades the topic of textbook costs has been a prevailing discussion among researchers, faculty, economists, policymakers, etc. The high costs of textbooks have been viewed as barriers to accessing course materials which are invaluable in the understanding of the course content, absorption of knowledge, and successful completion of the course. These barriers have been viewed as hindering students’ equity because the economically disadvantaged would become educationally disadvantaged. From a positive economics perspective, a scientist would provide the reason for such an occurrence. However, from a normative economics perspective, a policymaker would recommend decreasing the costs of textbooks by cheaper alternatives, such as Open Educational Resources (OER). This article provides an economic analysis explaining the market forces that shape the costs of traditional textbooks and OERs and possible recommendations using economic analysis.