26.9.04

MAKING THE TEXTBOOKS CHEAPER? Tyler at Marginal Revolution has some thoughts on the missing incentives for professors to seek out cheaper textbooks for their students. His proposal that professors share in the savings to students has some merit. Question: doesn't the marginal buyer play a greater role in determining the price of the book? Aren't the students on financial aid inframarginal buyers and the students working their way through college the marginal buyers? Does it therefore follow that textbooks are not overpriced?

No comments: