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The Benefits from Bundling Demand in K-12 Broadband Procurement

Author

Listed:
  • Gaurab Aryal
  • Charles Murry
  • Pallavi Pal
  • Arnab Palit

Abstract

We study a new market design for K-12 school broadband procurement that switched from school-specific bidding to a system that bundled schools into groups. Using an event study approach, we estimate the program reduced internet prices by 37% per Mbps per month while increasing bandwidth by 500%. These benefits occurred by mitigating exposure risk in broadband procurement – the risk that providers win too few contracts to cover fixed infrastructure costs. Using a bounds approach, we show robustness of our estimates and document that participants saved at least as much as their federal subsidies and experienced substantial welfare gains.

Suggested Citation

  • Gaurab Aryal & Charles Murry & Pallavi Pal & Arnab Palit, 2025. "The Benefits from Bundling Demand in K-12 Broadband Procurement," NBER Working Papers 33498, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:33498
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    More about this item

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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