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An Economic appraisal of MOOC platforms: business models and impacts on higher education

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  • Paul Belleflamme
  • Julien Jacqmin

Abstract

We start by using various economic and pedagogical concepts to understand the specificities of MOOC (Massive Online Open Courses) platforms. We then discuss how the private provision of MOOCs, seen as pure public goods, can be sustained. Based on the theory of multisided platforms, we analyse five ways to monetize the MOOC business. Our conclusion is that the most sustainable approach is what we call the `subcontractor model', flavored by touches of the other four models. We then claim that MOOC platforms can play a key transformative role in the higher education sector by making teaching practices evolve, rather than by replacing incumbent institutions. Finally, we derive a number of directions for public policy: governments should act to foster the cooperation between MOOC platforms and other higher education institutions, so as to improve the benefits that can arise from these technological innovations; a particular focus should also be given to professors in order to encourage them to innovate in their teaching practices.

Suggested Citation

  • Paul Belleflamme & Julien Jacqmin, 2014. "An Economic appraisal of MOOC platforms: business models and impacts on higher education," Working Papers 14-11, LAMETA, Universtiy of Montpellier, revised Oct 2014.
    • Handle: RePEc:lam:wpaper:14-11
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    Cited by:

    1. Jacqmin, Julien, 2018. "Why are some online courses more open than others?," MPRA Paper 89929, University Library of Munich, Germany.
    2. Lynne Pepall & Dan Richard, 2014. "Competition, Selectivity and Innovation in the Higher Educational Market," Discussion Papers Series, Department of Economics, Tufts University 0782, Department of Economics, Tufts University.
    3. Emilie Dargaud & Frédéric Jouneau-Sion, 2019. "The good MOOC and the universities," Working Papers halshs-01996582, HAL.
    4. Karl Taeuscher & Hannes Rothe, 2021. "Optimal distinctiveness in platform markets: Leveraging complementors as legitimacy buffers," Strategic Management Journal, Wiley Blackwell, vol. 42(2), pages 435-461, February.
    5. Xiaoyan Chen & Wei Geng, 2022. "Enroll now, pay later: optimal pricing and nudge efforts for massive-online-open-courses providers," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(2), pages 1003-1018, June.
    6. Belleflamme, Paul & Toulemonde, Eric, 2016. "Who benefits from increased competition among sellers on B2C platforms?," Research in Economics, Elsevier, vol. 70(4), pages 741-751.
    7. Jeffrey Bohler & John R. Drake & Ravi R. Paul & Eric L. Kisling, 2022. "Can Social Media Make Us More Trusting?," Journal of Electronic Commerce in Organizations (JECO), IGI Global, vol. 20(1), pages 1-16, January.
    8. Jacqmin, Julien, 2019. "Providing MOOCs: A FUN way to enroll students?," Information Economics and Policy, Elsevier, vol. 48(C), pages 32-39.
    9. Guerrero, Maribel & Heaton, Sohvi & Urbano, David, 2021. "Building universities’ intrapreneurial capabilities in the digital era: The role and impacts of Massive Open Online Courses (MOOCs)," Technovation, Elsevier, vol. 99(C).
    10. Antonio Matas-Terrón & Juan José Leiva-Olivencia & Pablo Daniel Franco-Caballero & Francisco José García-Aguilera, 2020. "Validity of the “Big Data Tendency in Education” Scale as a Tool Helping to Reach Inclusive Social Development," Sustainability, MDPI, vol. 12(13), pages 1-12, July.
    11. Emilie Dargaud & Frédéric Jouneau-Sion, 2019. "The good MOOC and the universities," Working Papers 1905, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    12. Gilbert E. Metcalf & James Stock, 2015. "The Role of Integrated Assessment Models in Climate Policy: A User's Guide and Assessment," Discussion Papers Series, Department of Economics, Tufts University 0811, Department of Economics, Tufts University.
    13. Antonio Matas-Terrón & Juan José Leiva-Olivencia & Cristina Negro-Martínez, 2020. "Tendency to Use Big Data in Education Based on Its Opportunities According to Andalusian Education Students," Social Sciences, MDPI, vol. 9(9), pages 1-12, September.
    14. Jason Howarth & Steven D'Alessandro & Lester Johnson & Lesley White, 2017. "MOOCs to university: a consumer goal and marketing perspective," Journal of Marketing for Higher Education, Taylor & Francis Journals, vol. 27(1), pages 144-158, January.
    15. Jacqmin, Julien, 2022. "Why are some Massive Open Online Courses more open than others?," Technovation, Elsevier, vol. 112(C).
    16. Emilie Dargaud & Fréedéeric Jouneau-Sion, 2020. "The good MOOC and the universities," Education Economics, Taylor & Francis Journals, vol. 28(5), pages 474-490, September.

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    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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