COMPLIMENTARILY YOURS - FREE EXAMINATION COPIES AND TEXTBOOK PRICES

Textbook publishers have asserted that the sale of complimentary textb ooks by professors raises textbook prices to students. This paper expl ores this assertion by modeling the effect of complimentary copy sale on publishers' edition life decision. This decision determines the mix of new and used books available, and hence the average price paid by students. Contrary to publishers' assertions, we find that increased p ropensity to sell complimentary copies by professors will tend to leng then edition life, and hence reduce the mean price paid by students.