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

Lindlacher, Valentin (2021): Low demand despite broad supply: Is high-speed Internet an infrastructure of general interest? In: Information Economics and Policy, Vol. 56, 100924

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 highspeed 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 highspeed 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. (c) 2021 Elsevier B.V. All rights reserved.

• Item Type: Journal article
• Faculties: Economics
• Subjects: 300 Social sciences > 330 Economics
• ISSN: 0167-6245
• Language: English