The Liftoff of Consumer Benefits from the Broadband Revolution
This paper uses both a discrete choice demand model and a direct survey method to derive robust measures of the contribution of home broadband to consumer welfare during the early years of broadband adoption by U.S. households. We estimate a demand system that distinguishes between cable, DSL, satellite and fiber broadband versus dial-up Internet services. We allow household preferences for Internet services to vary depending on the share of rural households in each geographic market, and find a significant impact of rural geography on demand. The estimated own-price elasticity of demand for broadband declines over time from -1.5 in 2005 to -0.7 in 2008. Consumer surplus from Internet is found to concentrate in broadband services, with the net consumer benefits from home broadband in 2008 on the order of $32 billion per year.
Year of publication: |
2012
|
---|---|
Authors: | Dutz Mark A. ; Orszag Jonathan M. ; Willig Robert D. |
Published in: |
Review of Network Economics. - De Gruyter, ISSN 1446-9022. - Vol. 11.2012, 4, p. 1-34
|
Publisher: |
De Gruyter |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
The Liftoff of Consumer Benefits from the Broadband Revolution
Dutz Mark A., (2012)
- More ...