Internet access in the US

by 1976- Chaudhuri, Anindya

This chapter (i) sets up a discrete choice framework to analyze the determinants of Internet demand by households, (ii) estimates the quantitative impacts of these factors, and (iii) discusses the possible approaches to increasing Internet penetration using insight derived from this excercise. Most sociodemographic variables have the expected signs, and the influences of income and education seem to be particularly strong. The substantial variation observed in access price may largely have a spatial explanation. Our analysis also suggests that the simple subscription decision is only modestly sensitive to price, implying access subsidies for basic access are unlikely to be a highly effective tool in bridging the digital divide.