The blog is based in turn on a careful study which finds that books for general audiences seem to be competitively priced across countries, but texts are not, as measured by prices at amazon.com and amazon.co.uk. (The study can be found at here) It concludes, “The average hardcover textbook price is roughly 50% higher in the United States than in the United Kingdom, and in some cases the US price is as much as double the UK price. This is counter to the conventional wisdom that consumer goods are cheaper in the US than in Europe. We argue that cost factors cannot explain differentials of this magnitude, hence price differences are almost exclusively demand-driven. We discuss several explanations for why demand may differ across countries. We also discuss why price differentials have persisted in the internet era and speculate on whether this is likely to continue."
The study further elaborates: "Differences in the college education culture in the two countries may ultimately be the most likely explanation for textbooks price differences. In the United States the textbook is an integral part of college education. In most courses instruction centers around a single textbook that covers most of the material and includes exercises and practice problems. The textbook is the main reference for students and it is usually labeled as "required" for the course. In the UK, textbooks are not used in the same way. Students are usually given a list of books that are meant to be study aids rather than mandatory textbooks. Thus students feel much less of an obligation to buy particular books, meaning that willingness to pay for textbooks is lower than in the United States. We feel that the central role of the textbook in US college instruction may be the primary source of price differentials."
