The Economics of Educational Software Portability

Abstract

Portability is defined as the capacity of an educational software item to be used differently from the way, the objectives, or the environment in which it was originally conceived. There are obvious economic strategies for increasing the portability of educational software. Computer software has high fixed costs and extremely low variable costs. In principle, portability would lead to greater utilization, reducing unit costs and increasing quality, thus leading to higher cost effectiveness. However, the nature and behavior of both centralized and decentralized education systems set limits to the exercise of pure economic rationality. The paper discusses both the limits of educational software markets and the potential effects of government policies to increase the portability of educational software. Three major findings derived from empirical observation and economic analysis are discussed. First, high fixed costs associated with very low variable costs make higher usage, and hence portability, particularly attractive. Second, given the peculiarities of educational markets, the way governments finance schools are relatively more important than the price of software: Teachers are more likely to buy, adapt, or develop programs according to the logic of local financing policies rather than cost considerations. Third, both markets and governments influence portability and the willingness of producers to develop portable computer-education software. Government policies that can be particularly effective to improve portability are financing and incentive systems, licensing, copyright agreements, and regulatory policies concerning systems compatibility. The provision of support functions through clearinghouses for exchange of information, training, research and development, and feedback to producers can also help correct for market imperfections.