Economics at your fingertips  

Difference between Adoption and Access Frequency to Internet and Consumer Surplus

Walid Hadhri (), Mohamed Ayadi () and Adel Ben Youssef
Additional contact information
Mohamed Ayadi: ISG - Institut supérieur de gestion - Université de Tunis, Ecole Supérieure des Sciences Economiques et Commerciales de Tunis - Université de Tunis

Post-Print from HAL

Abstract: The objective of this paper is twofold: first we use the methodology developed by Goolsbee and Klenow (2006) (G&K) that estimates the consumer's surplus of Internet's connection for France in 2005. Second, our paper challenges the initial methodology developed by G & K by using two complementary hypotheses and a Heckman's two stage estimation method. The first hypothesis take into account the concavity of the demand function of Internet and the second adds more realistic non-monetary variables. We also make some differentiation between Internet adoption and access frequency patterns using Heckman's (1976) correction procedure to resolves the selection problem. We find that French time opportunity cost is three times more important than connection cost. We find also that high-income people were more able to adopt Internet, but they spend less time online than low-income ones. In 2005, the French consumer surplus ranged between 1240$ and 3126$ if we use the G& K methodology, between 1679$ and 3126$ if we use our concave demand function, but between 2107$ and 2651$ if we use our two stage estimation method.

Keywords: Consumer Surplus; Internet; ICT uses; time opportunity cost (search for similar items in EconPapers)
Date: 2012-02-15
Note: View the original document on HAL open archive server:
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Published in Internet econometrics, Palgrave Macmillan, pp.107-129, 2012, 9780230362925

Downloads: (external link) (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().

Page updated 2019-08-12
Handle: RePEc:hal:journl:halshs-00937177