Why Are Textbooks So Expensive?

Wavebreakmedia/iStock via Getty Images
Wavebreakmedia/iStock via Getty Images

The beginning of a freshman’s college experience is an exciting time. Dining halls! No bedtime! Taunting your RA! Exorbitantly expensive textbooks!

Wait, that last one is no fun at all. It’s hard to make that first trip to the college bookstore for required texts without leaving with a bit of sticker shock. Why are textbooks so astonishingly expensive? Let’s take a look.

Publishers would explain that textbooks are really expensive to make. Dropping over a hundred bucks for a textbook seems like an outrage when you’re used to shelling out $10 or $25 for a novel, but textbooks aren’t made on the same budget. Those hundreds of glossy colorful pages, complete with charts, graphs, and illustrations, cost more than putting black words on regular old white paper. The National Association of College Stores has said that roughly 33 cents of every textbook dollar goes to this sort of production cost, with another 11.8 cents of every dollar going to author royalties. Making a textbook isn’t cheap.

There’s certainly some validity to this explanation. Yes, those charts and diagrams are expensive to produce, and the relatively small print runs of textbooks keep publishers from enjoying the kind of economies of scale they get on a bestselling popular novel. Any economist who has a pulse (and probably some who don’t) could poke holes in this argument pretty quickly, though.

In the simplest economic terms, the high price of textbooks is symptomatic of misaligned incentives, not exorbitant production costs. Students hold the reasonable stance that they’d like to spend as little money as possible on their books. Students don’t really have the latitude to pick which texts they need, though.

Professors pick the course materials, and faculty members don’t have any strong incentive to be price sensitive when it comes to selecting textbooks. Their out-of-pocket expense is zero whether the required texts cost $100 or $300, so there’s no real barrier to heaping on more reading material. If a student needs Class X to graduate, they’ll likely need to procure the required texts. This lack of cost-control incentives for professors is a major reason that at some point in college, everyone meets the expensive textbook’s even more maddening cousin, the Expensive Textbook You Never Even Use.

Moreover, many students aren’t all that price sensitive themselves. While the broke college kid is a beloved caricature, many students’ parents may still be footing the bill for school materials like books. Unless their parents raise a stink over a semester’s book bill, it’s easy to see how the textbook market could be one where none of the players actually have any strong incentive to be sensitive to prices.

Publishers also counter that widespread sales of used books cut into their bottom line. As eBay and Amazon have made the market for textbooks much bigger and more flexible, publishers lament that they’re losing out on sales, which necessitates higher retail prices for the new books they do sell.

Is there any truth to this argument? Maybe, but the effect may not be as great as the publishers claim. As economist Hal R. Varian wrote in The New York Times in 2005, it’s not totally clear that used textbooks are perfect substitutes for new ones. (Finding this piece absolved me of any residual guilt I may have had over selling Varian’s own excellent graduate microeconomics text on eBay last year.) As Varian puts it, used book sales probably cannibalizes less of the new book market than one might imagine.

Luckily for students, some external forces are placing downward pressure on textbook prices. Last year a new federal law went into effect that requires publishers to notify professors of textbook prices and schools to inform students of necessary course texts during registration. Online textbook rental companies could help replace outright ownership, as could electronic reserve programs. It may take a while, but in the future college students may be able to do the required reading without emptying their wallets.

Why Do We Wear Costumes on Halloween?

nito100/iStock via Getty Images
nito100/iStock via Getty Images

There’s no one explanation for how Halloween costumes originated. Much like the holiday itself, the practice of dressing up is the result of a hodgepodge of traditions from around the world.

Many historians suspect that the tradition has some basis in the Celtic festival of Samhain (also called Calan Gaeaf in Wales). Celebrated between the autumn equinox and the winter solstice, Samhain marks the official start of winter—known to the Celts as the “dark season.” During Samhain, “the world of the gods was believed to be made visible to humankind,” according to the Encyclopedia Britannica.

That wasn’t a comfort to the ancient Celts, who believed their deities were prone to playing tricks on human worshippers. Many festival participants disguised themselves as animals or beasts, hoping to hide from malevolent spirits who might bring them misfortune.

Move forward a few centuries and the modern-day practice of dressing up and trick-or-treating has its roots in the European custom of “mumming and guising.” Mummers would dress up in costumes, often woven from straw, and perform plays and songs for neighbors in exchange for food. Scottish and Irish immigrants brought that tradition to North America, where it later morphed into what we now know as trick-or-treating.

Halloween costumes didn’t experience their true heyday until the mid-1900s, though. For that, you can thank New York City entrepreneurs Ben and Nat Cooper, who started a company producing pop culture-themed costumes at a low cost. Ben Cooper, Inc., found a niche in helping kids become the characters they admired from television and comic books, often purchasing merchandising rights before said characters ever became popular. Due in no small part to the Cooper family’s innovation, Halloween costumes became an accessible and even necessary part of holiday festivities.

Today, Halloween costumes are big business. The National Retail Federation estimates that Americans will spend about $3.2 billion on costumes this year (of that, about half a billion will go to costuming pets). You have to wonder what the ancient Celts would have thought about today’s Halloween costumes.

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What's the Difference Between a College and a University?

Chinnapong/iStock via Getty Images
Chinnapong/iStock via Getty Images

Going off to college is a milestone in any young adult’s life. The phrase itself conjures up images of newfound independence, exposure to new perspectives, knowledge, and possibly even one or more sips of alcohol.

In America, however, few people use the phrase “going off to university,” or “headed to university,” even if they are indeed about to set off for, say, Harvard University. Why did college become the predominant term for postsecondary education? And is there any difference between the two institutions?

While university appears to be the older of the two terms, dating as far back as the 13th century, schools and students in North America have embraced college to describe most places of higher learning. There is no rigid definition of the words, but there are some general attributes for each. A college is typically a four-year school that offers undergraduate degrees like an associate or a bachelor’s. (Community colleges are often two-year schools.) They don’t typically offer master’s or doctorates, and the size of their student body is typically the smaller of the two.

Universities, on the other hand, tend to offer both undergraduate and graduate programs leading to advanced degrees for a larger group of students. They can also be comprised of several schools—referred to as colleges—under their umbrella. A university could offer both a school of arts and sciences and a school of business. The University of Michigan has a College of Engineering, for example.

While many of these traits are common, they’re not guaranteed. Some colleges can be bigger than universities, some might offer master’s degrees, and so on. To complicate matters further, an institution that fits the criteria of a university might choose to call itself a college. Both Dartmouth College and Boston College qualify as universities but use the college label owing to tradition. Schools may begin as colleges, grow into universities, but retain the original name.

People tend to think of a university as being more prestigious or harder to get into, but there are too many variables to make that determination at a glance. Some colleges might ask more of applicants than universities. Some universities might be smaller than certain colleges. Either one can be public or private.

Things get a little more convoluted abroad. In the UK, students go off to university (or uni) instead of college. The British version of college is typically a two-year program where students either focus on learning one particular skill set (much like a vocational school) or use the time to prepare for exams so that they can advance to university. Language matters, too; in Spanish, colegio usually refers to high school.

While the terms aren’t strictly interchangeable, there is enough of a difference between the two to try and make the distinction. Keep in mind that some states, like New Jersey, have rules about how institutions label themselves. There, a university has to have at least three fields of graduate study leading to advanced degrees.

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