Saturday, September 3, 2016

What do college textbooks, academic journals, healthcare and education have in common?

They all have big price inflation because those who consume the product don't pay the price. Instead, they are paid for using other people's money.


  1. Not so with many of the eMBA students. Rest assured, we are paying the price to be part of this program. :) -Adelyn Ortlieb

  2. Much like weddings, changing the name on an item is sure to inflate the price. Would you like to have the $20,000 wedding, or the $5000 party with the same amenities? It’s the same with books and where you buy them. Take this Managerial Economics book. I could have purchased it from the college bookstore for $235.00, or I could have purchased it new from Amazon for $230.00. Although only a few dollars different, I could have rented the eText book for $75 from my college bookstore, or $60 from Amazon. Fortunately through Amazon (where I buy all of my textbooks), I am able to purchase slightly used textbooks at a fraction of the cost. For this semester alone, it would have cost me over $700 for 2 courses via my college bookstore, whereas Amazon was just over $400, for 2 courses.
    I agree with the “Anonymous” post, we are certainly paying for it. The mention from Luke Froeb that “they are paid for using other people's money” is slightly inaccurate. While many of us are paying via college loans, aka “other people’s money”, this is borrowed and needs to be paid back with interest. College textbooks, academic journals, healthcare and education may be paid initially through loans, the expectation is that this will be paid back with interest.