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Eliciting Consumer Willingness to Pay for Home Internet Service: Closing the Digital Divide in the State of Indiana
Author(s) -
Lai John,
Widmar Nicole O.,
Bir Courtney
Publication year - 2020
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.1002/aepp.13000
Subject(s) - the internet , closing (real estate) , willingness to pay , business , broadband , internet access , digital divide , service (business) , internet portal , socioeconomic status , population , economic growth , marketing , socioeconomics , advertising , telecommunications , economics , finance , environmental health , medicine , engineering , world wide web , computer science , microeconomics
The economic and societal benefits of broadband have been well documented, including increased access to education, civic engagement, political participation, and public education. However, there continues to be disparity between rural and urban areas regarding internet access/speed. With the second highest Midwestern rural population density, this analysis sought to quantify usage of internet services and estimate Indiana residents’ willingness to pay (WTP) for home internet service. This analysis found the mean WTP for residents is between $0.06/Mbps and $0.10/Mbps per month for broadband. Age has a significant positive relationship with WTP for fiber optic internet; subscriber's employment also plays a significant role.