Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/296124 
Year of Publication: 
2024
Series/Report no.: 
CESifo Working Paper No. 11035
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
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.
Subjects: 
broadband internet
exposure problem
bundling
welfare
JEL: 
D44
H42
L86
L96
Document Type: 
Working Paper
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