An Economic Appraisal of MOOC Platforms: Business Models and Impacts on Higher Education

We use various economic and pedagogical concepts to understand the specificities of MOOC (Massive Online Open Courses) platforms. We discuss how the private provision of MOOCs can be sustained. Using the theory of multisided platforms, we analyze five ways to monetize the MOOC business. 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.