Hazlett, Oh, and Skorup on the Effects of Prohibiting Handset Bundling in Finland and Belgium


Thomas Hazlett joined IEP Scholars Sarah Oh and Brent Skorup in authoring a paper studying the effects of laws passed in Finland and Belgium prohibiting the bundling of cell phones with 3G wireless broadband plans. The paper compares 3G subscribership rates in these countries with other European countries that did not place such a ban on bundling. This ban on vertical integration can have negative effects on consumer welfare, as shown by a slow 3G penetration rate while the bans were in place, followed by rapid expansion upon repeal of the laws.

The full paper, entitled Natural Experiments in Mobile Phone Regulation: Estimated Effects of Prohibiting Handset Bundling in Finland and Belgium, can be downloaded here.

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Thomas W. Hazlett, Professor of Law and Economics and Director, Information Economy Project, George Mason University and Clemson University In...