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

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  • John Lai
  • Nicole O. Widmar
  • Courtney Bir

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.

Suggested Citation

  • John Lai & Nicole O. Widmar & Courtney Bir, 2020. "Eliciting Consumer Willingness to Pay for Home Internet Service: Closing the Digital Divide in the State of Indiana," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(2), pages 263-282, June.
    • Handle: RePEc:wly:apecpp:v:42:y:2020:i:2:p:263-282
    DOI: 10.1002/aepp.13000
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    Cited by:

    1. Regmi, Sabina & Kim, Ayoung & Mills, Devon P. & Green, John, 2023. "Meta-analysis of Consumer's willingness to pay for broadband," 2023 Annual Meeting, July 23-25, Washington D.C. 335602, Agricultural and Applied Economics Association.
    2. Kim, Yusun & Reeling, Carson & Widmar, Nicole J.O. & Lee, John G., 2023. "Estimating a model of forward-looking behavior with discrete choice experiments: The case of lifetime hunting license demand," Journal of choice modelling, Elsevier, vol. 47(C).
    3. John Lai & Nicole O. Widmar, 2021. "Revisiting the Digital Divide in the COVID‐19 Era," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(1), pages 458-464, March.
    4. Shuaitao Jiao & Qiubi Sun, 2021. "Digital Economic Development and Its Impact on Econimic Growth in China: Research Based on the Prespective of Sustainability," Sustainability, MDPI, vol. 13(18), pages 1-19, September.

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