Khan Academy: It’s Different This Time is a critical review of Khan Academy. The main point being that Khan Academy has created a new way of doing the same old teaching style of rote memorization and lacks conceptual learning.
Another point that really stood out to me was this:
One of Khan Academy’s biggest selling points is that it’s free. For schools and districts across the country faced with budget cuts, Khan Academy sounds like a godsend.
Except it’s not really free. Just as corn subsidies allow the price of a Big Mac to remain artificially low, the millions of dollars that well-meaning philanthropists have donated to Khan Academy have distorted the market for educational resources. In the name of leveling the playing field for students, they’ve inadvertently created barriers for other organizations whose products may be better, but also more expensive.
I’ve been really interested in this idea in other areas as well. Android subsidized via Google Search revenue. (Long ago) Internet Explorer subsidized by Office and Windows revenue. Content licensing subsidizing hardware (consoles, Kindle, etc.). There seems to be a large “activation energy” required to enter a market when your competition is free. That is, users seem to be willing to put up with a lot before they are willing to pay to remove problems. Which seems to mean that it creates a barrier to entry. Or perhaps these are just natural market forces? The problems must not be worth much if people aren’t willing to pay for the better product?
But what happens if the product, which isn’t really free, runs out of philanthropic resources? Or what if the product, which isn’t really free, turns out to be funded by externalities or (unknown) deferred costs? Won’t that just mean that the product, which isn’t really free, will have caused a temporary stagnation in the market it was in?
What does this mean for philanthropic aid in Africa? It seems some types of aid may be worth a temporary stagnation; for instance, preventing/curing malaria.