Gaurab Aryal

Presenter: Gaurab Aryal 

Paper: "Bundling Demand in K-12 Broadband Procurement," joint work with Charles Murry, Pallavi Pal, and Arnab Palit.

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 onethird, 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.

Here is the link to the paper.