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Vladimir Godnik/Beyond/Corbis
Vladimir Godnik/Beyond/Corbis

Why Are Textbooks So Expensive?

Vladimir Godnik/Beyond/Corbis
Vladimir Godnik/Beyond/Corbis

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.

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Why Does the Queen Have Two Birthdays?
CHRIS JACKSON, AFP/Getty Images
CHRIS JACKSON, AFP/Getty Images

On April 21, Her Majesty Queen Elizabeth II will turn 92 years old. To mark the occasion, there are usually a series of gun salutes around London: a 41 gun salute in Hyde Park, a 21 gun salute in Windsor Great Park, and a 62 gun salute at the Tower of London. For the most part, the monarch celebrates her big day privately. But on June 9, 2018, Her Majesty will parade through London as part of an opulent birthday celebration known as Trooping the Colour.

Queen Elizabeth, like many British monarchs before her, has two birthdays: the actual anniversary of the day she was born, and a separate day that is labeled her "official" birthday (usually the second Saturday in June). Why? Because April 21 is usually too cold for a proper parade.

The tradition started in 1748, with King George II, who had the misfortune of being born in chilly November. Rather than have his subjects risk catching colds, he combined his birthday celebration with the Trooping the Colour.

The parade itself had been part of British culture for almost a century by that time. At first it was strictly a military event, at which regiments displayed their flags—or "colours"—so that soldiers could familiarize themselves. But George was known as a formidable general after having led troops at the Battle of Dettingen in 1743, so the military celebration seemed a fitting occasion onto which to graft his warm-weather birthday. Edward VII, who also had a November birthday, was the first to standardize the June Trooping the Colour and launched a tradition of a monarchical review of the troops that drew crowds of onlookers.

Even now, the date of the "official" birthday varies year to year. For the first seven years of her reign, Elizabeth II held her official birthday on a Thursday but has since switched over to Saturdays. And while the date is tied to the Trooping the Colour in the UK, Commonwealth nations around the world have their own criteria, which generally involve recognizing it as a public holiday.

Australia started recognizing an official birthday back in 1788, and all the provinces (save one) observe the Queen's Birthday on the second Monday in June, with Western Australia holding its celebrations on the last Monday of September or the first Monday of October.

In Canada, the official birthday has been set to align with the actual birth date of Queen Victoria—May 24, 1819—since 1845, and as such they celebrate so-called Victoria Day on May 24 or the Monday before.

In New Zealand, it's the first Monday in June, and in the Falkland Islands the actual day of the Queen's birth is celebrated publicly.

All in all, just another reason it's great to be Queen.

Have you got a Big Question you'd like us to answer? If so, let us know by emailing us at bigquestions@mentalfloss.com.

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Big Questions
What Is the Meaning Behind "420"?
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Whether or not you’re a marijuana enthusiast, you’re probably aware that today is an unofficial holiday for those who are. April 20—4/20—is a day when pot smokers around the world come together to, well, smoke pot. Others use the day to push for legalization, holding marches and rallies.

But why the code 420? There are a lot of theories as to why that particular number was chosen, but most of them are wrong. You may have heard that 420 is police code for possession, or maybe it’s the penal code for marijuana use. Both are false. There is a California Senate Bill 420 that refers to the use of medical marijuana, but the bill was named for the code, not the other way around.

As far as anyone can tell, the phrase started with a bunch of high school students. Back in 1971, a group of kids at San Rafael High School in San Rafael, California, got in the habit of meeting at 4:20 to smoke after school. When they’d see each other in the hallways during the day, their shorthand was “420 Louis,” meaning, “Let’s meet at the Louis Pasteur statue at 4:20 to smoke.”

Somehow, the phrase caught on—and when the Grateful Dead eventually picked it up, "420" spread through the greater community like wildfire. What began as a silly code passed between classes is now a worldwide event for smokers and legalization activists everywhere—not a bad accomplishment for a bunch of high school stoners.

Have you got a Big Question you'd like us to answer? If so, let us know by emailing us at bigquestions@mentalfloss.com.

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