A textbook case of price-gouging: An animated infographic showing why university books in America cost so much.
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Four decades ago the cost of textbooks and overall consumer prices in America increased at about the same rate. But in the 1980s the two diverged. Consumer prices grew around three percent a year. And this remained steady till today. Yet the cost of textbooks went up. And up. And up. And by 2014 they had increased at three times the rate of other prices.
Thus textbooks look expensive; sometimes 300 dollars apiece. This is due to misaligned incentives. Professors choose course books regardless of cost, and often assign ones they've written -- which earn them royalties. So although education is priceless in some ways -- it is pricey in others.
Daily Watch: mind-stretching short films throughout the working week.
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Click here to subscribe to The Economist on YouTube: http://econ.trib.al/rWl91R7
Four decades ago the cost of textbooks and overall consumer prices in America increased at about the same rate. But in the 1980s the two diverged. Consumer prices grew around three percent a year. And this remained steady till today. Yet the cost of textbooks went up. And up. And up. And by 2014 they had increased at three times the rate of other prices.
Thus textbooks look expensive; sometimes 300 dollars apiece. This is due to misaligned incentives. Professors choose course books regardless of cost, and often assign ones they've written -- which earn them royalties. So although education is priceless in some ways -- it is pricey in others.
Daily Watch: mind-stretching short films throughout the working week.
For more from Economist Films visit: http://films.economist.com/
Check out The Economist’s full video catalogue: http://econ.st/20IehQk
Like The Economist on Facebook: https://www.facebook.com/TheEconomist/
Follow The Economist on Twitter: https://twitter.com/theeconomist
Follow us on Instagram: https://www.instagram.com/theeconomist/
Follow us on LINE: http://econ.st/1WXkOo6
Follow us on Medium: https://medium.com/@the_economist
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