This paper analyzes the process of Internet diffusion across the world using a panel of 199 countries during the time interval 1990-2004. We group countries in two categories, low and high income countries, and show that the Internet diffusion process is well characterized by an S-shape curve...

Economic literature describes drastic and non-drastic innovations as sources of marginal cost reduction. The difference is that non-drastic innovations are unable to reduce the new marginal cost in order to ensure that the innovator is able to set monopoly price lower than the previous marginal...