David Lancy’s recent editorial
Lancy Logic Indicative of a Greater Ignorance
As I read the latest installment of Professor Lancy’s discourse on the future of academic texts, I was appalled by the lack of common sense it contained.
After describing a world in which students download electronic texts paid for with mandatory student fees, Professor Lancy states: “This is the only way that I can see to guarantee publishers enough of a return to persuade them to stay in business.” Part of the reason the United States is so productive (and wealthy) is the adaptivity and innovation of firms’ management. As publishers adapt to changing consumer preferences, electronic distribution of texts will emerge as a possibility, but will not be the “only way” to ensure new texts continue to be written.
As long as consumer demand for printed textbooks exists, firms will profit by supplying them (I learned this from an introductory text written by Gregory Mankiw who, incidentally, received a million dollar signing bonus just for agreeing to write the book – a strong indication that the industry isn’t collapsing). I, personally, would be willing to pay a premium to have a traditional book.
Lancy’s assumption that Universities will require students to pay for books through student fees is also a stretch. Why would a University upset its students to increase profit margins for textbook publishers? It is more likely that Universities would re-allow the use of new edition texts before they would require students to buy the new edition in electronic format through fees.
Professor Lancy also suggests that the capital investment required for electronic distribution will force firms out of the market. Although Professor Lancy isn’t aware of it, modern publishing is already done on computers! A $399 dell is capable of burning a textbook sized pdf file onto cd for distribution. What capital costs could he be talking about? If we are nearing the abolition of the academic printing press, as Lancy suggests, then lower entry costs into the market should encourage competition and subsequently lower prices.
Lastly, have used car sales put car makers out of business? NO! This is because firms innovate and provide incentives for consumers to buy new model cars (and textbooks).
Professor Lancy’s ignorance of the principles of both economics AND common sense are but a manifestation of a greater problem. An ecology professor lectures on Chinese public policy, a geology professor speaks about the efficiencies of government regulation, when will our professors learn that a PhD doesn’t entitle them to pass their uninformed opinions as facts?
Bob FawsonA00388051bob_fawson@hotmail.com435-881-9634