Low demand despite broad supply: Is high-speed Internet an infrastructure of general interest?

Research output: Contribution to journalResearch articleContributedpeer-review

Contributors

  • Valentin Lindlacher - , ifo Institut für Wirtschaftsforschung e.V., Ludwig Maximilian University of Munich (Author)

Abstract

Although the recent years have witnessed a stark increase in the availability of high-speed Internet, adoption rates remain low. One potential explanation is that for most users high-speed Internet does not increase their utility. Using a mixed logit discrete choice model, this paper analyzes whether high-speed and basic Internet are substitutes. I find that they are not. Users who do not need higher speeds, choose basic speeds regardless of high-speed availability. Therefore, high-speed Internet is not an infrastructure of general interest. Consequently, policy-makers cannot increase usage of high-speed Internet by solely fostering its rollout.

Details

Original languageEnglish
Article number100924
JournalInformation Economics and Policy
Volume56
Publication statusPublished - Sept 2021
Peer-reviewedYes
Externally publishedYes

External IDs

Scopus 85107158749

Keywords

Library keywords