The ongoing debate on the "digital divide" is centered on improving Internet home-access penetration rates through two instruments, price subsidies and capital subsidies. Subsidizing home access can be expensive and difficult because of the inherent difficulty of identifying target households....

This paper analyzes the impact of a variety of socio-economic influences on households' decision to pay for basic Internet access, using a discrete choice framework, and making use of a unique survey of Internet use among American households. Traditional socio-demographic variables are apparent,...