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

Valentin Lindlacher

Information Economics and Policy, 2021, vol. 56, issue C

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.

Keywords: High-speed Internet; Broadband; Discrete choice; Mixed logit (search for similar items in EconPapers)
JEL-codes: L13 L51 L96 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:iepoli:v:56:y:2021:i:c:s0167624521000123

DOI: 10.1016/j.infoecopol.2021.100924

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