Bundling Demand in K-12 Broadband Procurement

Gaurab Aryal (), Charles Murry, Pallavi Pal and Arnab Palit

No 11035, CESifo Working Paper Series from CESifo

Abstract: We evaluate the effects of bundling demand for broadband internet by K-12 schools. In 2014, New Jersey switched from decentralized procurements to a new procurement system that bundled schools into four regional groups. Using an event study approach, we find that, on average, prices for participants decreased by one-third, and broadband speed purchased increased sixfold. We bound the change in school expenditures due to the program and find that participants saved at least as much as their total “E-rate” subsidy from the federal government. Under weak assumptions on demand, we show that participating schools experienced large welfare gains.

Keywords: broadband internet; exposure problem; bundling; welfare (search for similar items in EconPapers)
JEL-codes: D44 H42 L86 L96 (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-ict and nep-ure
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