History

Texts specifically designated for educational purposes were written in ancient Greece. The modern textbook has its roots in the standardization made possible by the printing press. Johann Gutenberg himself may have printed editions of Ars Minor, a schoolbook on Latin grammar by Aelius Donatus. Early textbooks were used by tutors, teachers, who used the books as instructional aids (e.g. alphabet books) and individuals involved in autodidacticism.

Compulsory education and the subsequent growth of schooling in Europe led to the printing of many standardized texts for children. Textbooks have become 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.

As of 2007, the four largest college textbook publishers in the United States were:

• Pearson Education (including such imprints as Addison-Wesley and Prentice Hall)
• Cengage Learning (formerly Thomson Learning)
• McGraw-Hill
• Houghton Mifflin

In addition, other large publishers include:

• EMC Paradigm

• John Wiley & Sons
• Jones and Bartlett Publishers
• Bedford, Freeman, and Worth Publishing Group

• F. A. Davis Company
• W. W. Norton & Company

Technological advances are constantly changing America's higher education landscape, including 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 and PDF books, online tutoring systems and video lectures.

Most notably, an increasing number of authors are foregoing commercial publishers and offering their textbooks under a creative commons or other open license. The New York Times recently endorsed the use of free, open, digital textbooks in the editorial "That textbook costs how much?"

The "Broken Market"

The textbooks market does not operate according to the same economic principles as a normal consumer market. First, the end consumers (students) do not select the product, and the people choosing the product (faculty) do not purchase the product. Therefore, price is removed from the purchasing decision, giving the producer (publishers) disproportionate market power to set prices high.

This fundamental flaw in the market is blamed as the primary reason that prices are out of control. The term "Broken Market" first appeared in Economist James Koch's analysis of the market commissioned by the Advisory Committee on Student Financial Assistance.

This situation is exacerbated by the lack of competition in the textbook market. A recent wave of consolidation reduced the number of major textbook companies to just three: Pearson, Cengage Learning and McGraw-Hill. Consequently, there is less competition than there used to be, and the high cost of startup keeps new companies from entering.