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Some economic and social aspects of residential internet use in Australia

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Author Info
Madden, Gary G
Savage, Scott J
Abstract

This study constructs a profile of the representative Australian residential Internet user from data obtained from a web-based survey. Survey data indicate the representative user is male, 20 to 40 years of age, highly educated, uses the Internet 8 hrs per week for e-mail and FTP, and has a monthly bill of AUD32. Anordered-logit model relates Internet use to price, sociodemographic and connection capacity variables. Model estimates show the probability of higher Internet use is greater for middle-income households, but declines with age of the user. Policy may be required to enhance access to lower-income groups, and to inform the elderly of the potential capabilities of the new technology. Further, model estimates suggest that Australian Internet subscribers prefer flat-rate pricing (or a combination of flat-rate and usagesensitive pricing) over usage-sensitive pricing schemes. This result is consistent with Australian consumer attitudes toward local telephone and mobile cellular pricing.

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File URL: http://mpra.ub.uni-muenchen.de/11158/
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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 11158.

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Date of creation: 2000
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Publication status: Published in The Journal of Media Economics 13.3(2000): pp. 171-185
Handle: RePEc:pra:mprapa:11158

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Related research
Keywords: Residential internet use in Australia; economic and social aspects;

Find related papers by JEL classification:
L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

References listed on IDEAS
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  1. Jeffrey Rohlfs, 1974. "A Theory of Interdependent Demand for a Communications Service," Bell Journal of Economics, The RAND Corporation, vol. 5(1), pages 16-37, Spring. [Downloadable!] (restricted)
  2. Kenneth E. Train & Daniel L. McFadden & Moshe Ben-Akiva, 1987. "The Demand for Local Telephone Service: A Fully Discrete Model of Residential Calling Patterns and Service Choices," RAND Journal of Economics, The RAND Corporation, vol. 18(1), pages 109-123, Spring. [Downloadable!] (restricted)
  3. Roland Artle & Christian Averous, 1973. "The Telephone System as a Public Good: Static and Dynamic Aspects," Bell Journal of Economics, The RAND Corporation, vol. 4(1), pages 89-100, Spring. [Downloadable!] (restricted)
  4. Jeffrey K. MacKie-Mason & Hal R. Varian, 1996. "Economic FAQs About the Internet," Industrial Organization 9606001, EconWPA. [Downloadable!]
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  5. Bodnar & Peter Dilworth & Salvatore Iacono, Judith, 1988. "Cross-sectional analysis of residential telephone subscription in Canada," Information Economics and Policy, Elsevier, vol. 3(4), pages 355-378. [Downloadable!] (restricted)
  6. Jeffrey K. MacKie-Mason & Hal R. Varian, 1994. "Some Economics of the Internet," Computational Economics 9401001, EconWPA. [Downloadable!]
    Other versions:
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This page was last updated on 2009-11-27.


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