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A textbook is a book containing a comprehensive compilation of content in a branch of study with the intention of explaining it. Textbooks are produced to meet the needs of educators, usually at educational institutions. Schoolbooks are textbooks and other books used in schools.[1][2] Today, many textbooks are published in both print and digital formats.

The history of textbooks dates back to ancient civilizations. For example, Ancient Greeks wrote educational texts. The modern textbook has its roots in the mass production made possible by the printing press. Johannes Gutenberg himself may have printed editions of Ars Minor, a schoolbook on Latin grammar by Aelius Donatus. Early textbooks were used by tutors and teachers (e.g. alphabet books), as well as by individuals who taught themselves.

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While many textbooks were already in use, compulsory education and the resulting growth of schooling in Europe led to the printing of many more textbooks for children. Textbooks have been the primary teaching instrument for most children since the 19th century. Two textbooks of historical significance in United States schooling were the 18th century New England Primer and the 19th century McGuffey Readers.

Recent technological advances have changed the way people interact with textbooks. Online and digital materials are making it increasingly easy for students to access materials other than the traditional print textbook. Students now have access to electronic books ("e-books"), online tutoring systems and video lectures. An example of an e-book is Principles of Biology from Nature Publishing.

As in many industries, the number of providers has declined in recent years (there are just a handful of major textbook companies in the United States).[6] Also, elasticity of demand is fairly low. The term "broken market" appeared in the economist James Koch's analysis of the market commissioned by the Advisory Committee on Student Financial Assistance.[7]

In the United States, the largest textbook publishers are Pearson Education, Cengage, McGraw-Hill Education, and Wiley. Together they control 90% of market revenue.[8] Another textbook publisher is Houghton Mifflin Harcourt.[9]

Most leading textbook companies publish a new edition every 3 or 4 years, more frequently in math and science. Harvard economics chair James K. Stock has stated that new editions are often not about significant improvements to the content. "New editions are to a considerable extent simply another tool used by publishers and textbook authors to maintain their revenue stream, that is, to keep up prices."[11] A study conducted by The Student PIRGs found that a new edition costs 12% more than a new copy of the previous edition (not surprising if the old version is obsolete), and 58% more than a used copy of the previous edition. Textbook publishers maintain these new editions are driven by demand from teachers. That study found that 76% of teachers said new editions were justified "half of the time or less" and 40% said they were justified "rarely" or "never".[12] The PIRG study has been criticized by publishers, who argue that the report contains factual inaccuracies regarding the annual average cost of textbooks per student.[13]

The Student PIRGs also point out that recent emphasis on e-textbooks does not always save students money. Even though the book costs less up-front, the student will not recover any of the cost through resale.[14]

Another publishing industry practice that has been highly criticized is "bundling", or shrink-wrapping supplemental items into a textbook.[citation needed] Supplemental items range from CD-ROMs and workbooks to online passcodes and bonus material. Students often cannot buy these things separately, and often the one-time-use supplements destroy the resale value of the textbook.[15]

While publishers, retailers, and wholesalers all play a role in textbook pricing, the primary factor contributing to increases in the price of textbooks has been the increased investment publishers have made in new products to enhance instruction and learning...While wholesalers, retailers, and others do not question the quality of these materials, they have expressed concern that the publishers' practice of packaging supplements with a textbook to sell as one unit limits the opportunity students have to purchase less expensive used books....If publishers continue to increase these investments, particularly in technology, the cost to produce a textbook is likely to continue to increase in the future.[16]

Bundling has also been used to segment the used book market. Each combination of a textbook and supplemental items receives a separate ISBN. A single textbook could therefore have dozens of ISBNs that denote different combinations of supplements packaged with that particular book. When a bookstore attempts to track down used copies of textbooks, they will search for the ISBN the course instructor orders, which will locate only a subset of the copies of the textbook.

Legislation at state and federal levels seeks to limit the practice of bundling, by requiring publishers to offer all components separately.[17] Publishers have testified in favor of bills including this provision,[18] but only in the case that the provision exempts the loosely defined category of "integrated textbooks". The Federal bill[19] only exempts 3rd party materials in integrated textbooks, however publisher lobbyists have attempted to create a loophole through this definition in state bills.[20][21]

Given that the problem of high textbook prices is linked to the "broken" economics of the market, requiring publishers to disclose textbook prices to faculty is a solution pursued by a number of legislatures.[22] By inserting price into sales interactions, this regulation will supposedly make the economic forces operate more normally.

Once a textbook is purchased from a retailer for the first time, there are several ways a student can sell his/her textbooks back at the end of the semester or later. Students can sell to 1) the college/university bookstore; 2) fellow students; 3) numerous online websites; or 4) a student swap service.

When students resell their textbooks during campus "buyback" periods, these textbooks are often sold into the national used textbook distribution chain. If a textbook is not going to be used on campus for the next semester of courses then many times the college bookstore will sell that book to a national used book company. The used book company then resells the book to another college bookstore. Finally, that book is sold as used to a student at another college at a price that is typically 75% of the new book price. At each step, a markup is applied to the book to enable the respective companies to continue to operate.

Students can also sell or trade textbooks among themselves. After completing a course, sellers will often seek out members of the next enrolling class, people who are likely to be interested in purchasing the required books. This may be done by posting flyers to advertise the sale of the books or simply soliciting individuals who are shopping in the college bookstore for the same titles. Many larger schools have independent websites set up for the purpose of facilitating such trade. These often operate much like digital classified ads, enabling students to list their items for sale and browse for those they wish to acquire. Also, at the US Air Force Academy, it is possible to e-mail entire specific classes, allowing for an extensive network of textbook sales to exist.

Online marketplaces are one of the two major types of online websites students can use to sell used textbooks. Online marketplaces may have an online auction format or may allow the student to list their books for a fixed price. In either case, the student must create the listing for each book themselves and wait for a buyer to order, making the use of marketplaces a more passive way of selling used textbooks. Unlike campus buyback and online book, students are unlikely to sell all their books to one buyer using online marketplaces, and will likely have to send out multiple books individually.

Online book buyers buy textbooks, and sometimes other types of books, with the aim of reselling them for a profit. Like online marketplaces, online book buyers operate year-round, giving students the opportunity to sell their books even when campus "buyback" periods are not in effect. Online book buyers, who are often online book sellers as well, will sometimes disclaim whether or not a book can be sold back prior to purchase. Students enter the ISBN numbers of the books they wish to sell and receive a price quote or offer. These online book buyers often offer "free shipping" (which in actuality is built into the offer for the book), and allow students to sell multiple books to the same source. Because online book buyers are buying books for resale, the prices they offer may be lower than students can get on online marketplaces. However, their prices are competitive, and they tend to focus on the convenience of their service. Some even claim that buying used textbooks online and selling them to online book buyers has a lower total cost than even textbook rental services.

In response to escalating textbook prices, limited competition, and to provide a more efficient system to connect buyers and sellers together, online textbook exchanges were developed. Most of today's sites handle buyer and seller payments, and usually deduct a small commission only after the sale is completed.

According to textbook author Henry L. Roediger (and Wadsworth Publishing Company senior editor Vicki Knight), the used textbook market is illegitimate, and entirely to blame for the rising costs of textbooks. As methods of "dealing with this problem", he recommends making previous editions of textbooks obsolete, binding the textbook with other materials, and passing laws to prevent the sale of used books.[31] The concept is not unlike the limited licensing approach for computer software, which places rigid restrictions on resale and reproduction. The intent is to make users understand that the content of any textbook is the intellectual property of the author and/or the publisher, and that as such, subject to copyright. Obviously, this idea is completely opposed to the millennia-old tradition of the sale of used books, and would make that entire industry illegal. e24fc04721