2014
DOI: 10.1257/aer.104.5.519
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The Industrial Organization of Online Education

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.

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Cited by 37 publications
(18 citation statements)
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“…Administrative concerns also have driven this growth, including efforts to find cost savings, increase productivity, and create profit-making opportunities (Cowen and Tabarrok 2014). In the province where we teach, government also has taken notice, investing millions of dollars in online-learning initiatives (Ontario 2015).…”
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confidence: 99%
“…Administrative concerns also have driven this growth, including efforts to find cost savings, increase productivity, and create profit-making opportunities (Cowen and Tabarrok 2014). In the province where we teach, government also has taken notice, investing millions of dollars in online-learning initiatives (Ontario 2015).…”
mentioning
confidence: 99%
“…Inflation-adjusted state appropriations for higher Online learning technologies are regarded by most observers as the best hope for cost-saving innovations in higher education, with the primary channel being reduced labor costs through larger class size and less face-to-face interaction (Bowen 2012). Much research on the use of online technology in the classroom has focused on its potential for "disruptive innovation" in higher education, from superstar professors teaching elaborate courses developed by teams, to Massively Open Online Courses (MOOCs) offering top notch instruction to students worldwide (Christensen and Eyring 2011;Cowen and Tabarrok 2014).…”
mentioning
confidence: 99%
“…Online learning technologies are regarded by most observers as the best hope for costsaving innovations in higher education, with the primary channel being reduced labor costs through larger class size and less face-to-face interaction (Bowen 2012). Much research on the use of online technology in the classroom has focused on its potential for "disruptive innovation" in higher education, from superstar professors teaching elaborate courses developed by teams, to Massively Open Online Courses (MOOCs) offering top notch instruction to students worldwide (Christensen and Eyring 2011;Cowen and Tabarrok 2014).…”
Section: -1-mentioning
confidence: 99%