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The Industrial Organization of Online Education

Author

Listed:
  • Tyler Cowen
  • Alex Tabarrok

Abstract

Online education has flexibility and cost advantages over in-class teaching and these advantages will grow with improvements in information technology. We consider likely market structures given that the quality aspects of online education exhibit endogenous fixed costs. Concentration in the market for courses could be high, as it is currently in the market for textbooks. The not-for-profit sector will exhibit lower costs, lower concentration, and possibly zero price.

Suggested Citation

  • Tyler Cowen & Alex Tabarrok, 2014. "The Industrial Organization of Online Education," American Economic Review, American Economic Association, vol. 104(5), pages 519-522, May.
    • Handle: RePEc:aea:aecrev:v:104:y:2014:i:5:p:519-22
    Note: DOI: 10.1257/aer.104.5.519
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    Citations

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    Cited by:

    1. Perri, Timothy, 2016. "Online education, signaling, and human capital," Information Economics and Policy, Elsevier, vol. 36(C), pages 69-74.
    2. John J. Cheslock & Ozan Jaquette, 2022. "Concentrated or Fragmented? The U.S. Market for Online Higher Education," Research in Higher Education, Springer;Association for Institutional Research, vol. 63(1), pages 33-59, February.
    3. Caroline M. Hoxby, 2017. "Online Postsecondary Education and Labor Productivity," NBER Chapters, in: Education, Skills, and Technical Change: Implications for Future US GDP Growth, pages 401-460, National Bureau of Economic Research, Inc.
    4. Linus Andersson, 2019. "Online Distance Education and Transition to Parenthood Among Female University Students in Sweden," European Journal of Population, Springer;European Association for Population Studies, vol. 35(4), pages 795-823, October.
    5. Kaganovich, Michael & Sarpca, Sinan & Su, Xuejuan, 2020. "Competition in Higher Education," Working Papers 2020-3, University of Alberta, Department of Economics.
    6. Maria De Paola & Francesca Gioia & Vincenzo Scoppa, 2022. "Online Teaching, Procrastination And Students’ Achievement: Evidence From Covid-19 Induced Remote Learning," Working Papers 202202, Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF.
    7. Meseguer-Martinez, Angel & Ros-Galvez, Alejandro & Rosa-Garcia, Alfonso, 2015. "Are short Economics teaching videos liked? Analysis of features driving “Likes” in Youtube," MPRA Paper 63039, University Library of Munich, Germany.
    8. Reeson, Andrew & Mason, Claire & Sanderson, Todd & Bratanova, Alexandra & Hajkowicz, Stefan, 2016. "The VET era: equipping Australia’s workforce for the future digital economy," MPRA Paper 114022, University Library of Munich, Germany.
    9. Justin C. Ortagus & Lijing Yang, 2018. "An Examination of the Influence of Decreases in State Appropriations on Online Enrollment at Public Universities," Research in Higher Education, Springer;Association for Institutional Research, vol. 59(7), pages 847-865, November.
    10. Michael Kaganovich & Sinan Sarpca & Xuejuan Su, 2020. "Competition in Higher Education: A Survey," CESifo Working Paper Series 8220, CESifo.

    More about this item

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions

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