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Building and Delivering the Virtual World: Commercializing Services for Internet Access

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  • Greenstein, Shane

Abstract

This study analyzes the service offerings of Internet Service Providers (ISPs), the commercial suppliers of Internet access in the United States. It presents data on the services of 2089 ISPs in the summer of 1998. By this time many ISPs had begun to offer services other than basic access. This paper develops an Internet access industry product code that classifies these services. Significant heterogeneity across ISPs is found in the propensity to offer these services, a pattern with an unconditional urban/rural difference. Most of the explained variance in behavior arises from firm-specific factors, with some evidence of location-specific factors. Copyright 2000 by Blackwell Publishing Ltd

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Journal of Industrial Economics.

Volume (Year): 48 (2000)
Issue (Month): 4 (December)
Pages: 391-411

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Handle: RePEc:bla:jindec:v:48:y:2000:i:4:p:391-411

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References

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  1. Erik Brynjolfsson & Lorin Hitt, 1997. "Information Technology as a Factor of Production: The Role of Differences Among Firms," Working Paper Series 201, MIT Center for Coordination Science.
  2. Shane Greenstein, . "Commercialization of the Internet: The Interaction of Public Policy and Private Choices," IPR working papers 00-11, Institute for Policy Resarch at Northwestern University.
  3. Mitchell,Bridger M. & Vogelsang,Ingo, 1992. "Telecommunications Pricing," Cambridge Books, Cambridge University Press, number 9780521426787, October.
  4. Timothy F. Bresnahan & Manuel Trajtenberg, 1995. "General Purpose Technologies "Engines of Growth?"," NBER Working Papers 4148, National Bureau of Economic Research, Inc.
  5. Demsetz, Harold, 1988. "The Theory of the Firm Revisited," Journal of Law, Economics and Organization, Oxford University Press, vol. 4(1), pages 141-61, Spring.
  6. Shane M. Greenstein & Mercedes M. Lizardo & Pablo T. Spiller, 1997. "The Evolution of Advanced Large Scale Information Infrastructure in the United States," NBER Working Papers 5929, National Bureau of Economic Research, Inc.
  7. Susan Athey & Scott Stern, 1998. "An Empirical Framework for Testing Theories About Complimentarity in Organizational Design," NBER Working Papers 6600, National Bureau of Economic Research, Inc.
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Citations

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Cited by:
  1. Shane Greenstein, 2006. "Innovation and the Evolution of Market Structure for Internet Access in the United States," Discussion Papers 05-018, Stanford Institute for Economic Policy Research.
  2. Steve Thompson & Mike Wright, 2005. "Edith Penrose's contribution to economics and strategy: an overview," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 26(2), pages 57-66.
  3. SeungJae Shin & Martin B. Weiss & Jack Tucci, 2007. "Rural Internet access: over-subscription strategies, regulation and equilibrium," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 28(1), pages 1-12.
  4. Rajeev Goel & Edward Hsieh & Michael Nelson & Rati Ram, 2006. "Demand elasticities for Internet services," Applied Economics, Taylor & Francis Journals, vol. 38(9), pages 975-980.
  5. Peter Stenberg, 2011. "Investment in Rural Broadband Technologies," ERSA conference papers ersa11p1028, European Regional Science Association.
  6. Sinai, Todd & Waldfogel, Joel, 2004. "Geography and the Internet: is the Internet a substitute or a complement for cities?," Journal of Urban Economics, Elsevier, vol. 56(1), pages 1-24, July.
  7. Angelique Augereau & Shane Greenstein & Marc Rysman, 2004. "Coordination vs. Differentiation in a Standards War: 56K Modems," NBER Working Papers 10334, National Bureau of Economic Research, Inc.

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