Low demand despite broad supply: Is high-speed Internet an infrastructure of general interest?
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Contributors
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 language | English |
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Article number | 100924 |
Journal | Information Economics and Policy |
Volume | 56 |
Publication status | Published - Sept 2021 |
Peer-reviewed | Yes |
Externally published | Yes |
External IDs
Scopus | 85107158749 |
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