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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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Big Questions
Why Does Turkey Make You Tired?
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Why do people have such a hard time staying awake after Thanksgiving dinner? Most people blame tryptophan, but that's not really the main culprit. And what is tryptophan, anyway?

Tryptophan is an amino acid that the body uses in the processes of making vitamin B3 and serotonin, a neurotransmitter that helps regulate sleep. It can't be produced by our bodies, so we need to get it through our diet. From which foods, exactly? Turkey, of course, but also other meats, chocolate, bananas, mangoes, dairy products, eggs, chickpeas, peanuts, and a slew of other foods. Some of these foods, like cheddar cheese, have more tryptophan per gram than turkey. Tryptophan doesn't have much of an impact unless it's taken on an empty stomach and in an amount larger than what we're getting from our drumstick. So why does turkey get the rap as a one-way ticket to a nap?

The urge to snooze is more the fault of the average Thanksgiving meal and all the food and booze that go with it. Here are a few things that play into the nap factor:

Fats: That turkey skin is delicious, but fats take a lot of energy to digest, so the body redirects blood to the digestive system. Reduced blood flow in the rest of the body means reduced energy.

Alcohol: What Homer Simpson called the cause of—and solution to—all of life's problems is also a central nervous system depressant.

Overeating: Same deal as fats. It takes a lot of energy to digest a big feast (the average Thanksgiving meal contains 3000 calories and 229 grams of fat), so blood is sent to the digestive process system, leaving the brain a little tired.

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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The balloons for this year's Macy’s Thanksgiving Day Parade range from the classics like Charlie Brown to more modern characters who have debuted in the past few years, including The Elf On The Shelf. New to the parade this year are Olaf from Disney's Frozen and Chase from Paw Patrol. But how does the retail giant choose which characters will appear in the lineup?

Balloon characters are chosen in different ways. For example, in 2011, Macy’s requested B. Boy after parade organizers saw the Tim Burton retrospective at the Museum of Modern Art. (The company had been adding a series of art balloons to the parade lineup since 2005, which it called the Blue Sky Gallery.) When it comes to commercial balloons, though, it appears to be all about the Benjamins.

First-time balloons cost at least $190,000—this covers admission into the parade and the cost of balloon construction. After the initial year, companies can expect to pay Macy’s about $90,000 to get a character into the parade lineup. If you consider that the balloons are out for only an hour or so, that’s about $1500 a minute.

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