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Eliciting Consumer Willingness to Pay for Home Internet Service: Closing the Digital Divide in the State of Indiana

John Lai, Nicole O. Widmar and Courtney Bir

Applied Economic Perspectives and Policy, 2020, vol. 42, issue 2, 263-282

Abstract: 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.

Date: 2020
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Handle: RePEc:wly:apecpp:v:42:y:2020:i:2:p:263-282