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To have or not to have Internet at home: Implications for online shopping

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  • Pérez-Hernández, Javier
  • Sánchez-Mangas, Rocío

Abstract

This paper analyzes the individual decision of online shopping, in terms of socioeconomic characteristics, Internet related variables and location factors. Since online shopping is only observed for Internet users, we use the Heckman’s two-step model to correct sample selection. We argue that one of the relevant variables to explain online shopping, the existence of a home Internet connection, can be endogenous. To account for this potential endogeneity, we jointly estimate the probability of online shopping and the probability of having Internet at home. The dataset used in this paper comes from the Household Survey of ICT Equipment and Usage, conducted by the Spanish Statistical Office on an annual basis. Our analysis covers the period 2004–2009. Our results show that not accounting for the endogeneity of having Internet at home, leads to an overestimate of that variable’s effect on the probability of buying online. We also show that, compared to other variables that are also relevant for online shopping, the effect of Internet at home is quite small. This finding can be important in the design of public policies aimed at enhancing e-commerce through providing households with Internet connection at home.

Suggested Citation

  • Pérez-Hernández, Javier & Sánchez-Mangas, Rocío, 2011. "To have or not to have Internet at home: Implications for online shopping," Information Economics and Policy, Elsevier, vol. 23(3), pages 213-226.
    • Handle: RePEc:eee:iepoli:v:23:y:2011:i:3:p:213-226
    DOI: 10.1016/j.infoecopol.2011.03.003
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    References listed on IDEAS

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    Cited by:

    1. Marco Cioppi, 2013. "The role of web communication to enhance the value of retail trade in small cities," The International Journal of Economic Behavior - IJEB, Faculty of Business and Administration, University of Bucharest, vol. 3(1), pages 127-145, December.
    2. Irena Atanasova & Vasileios Gerakis, 2023. "B2C E-Commerce Adoption among Elders in Greece," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 25(1), pages 112-124, June.
    3. Ángel Valarezo & Rafael López & Teodosio Pérez-Amaral, 2019. "Adoption of e-commerce by individuals and digital divide: Evidence from Spain," Documentos de Trabajo del ICAE 2019-19, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales, Instituto Complutense de Análisis Económico.
    4. Bang, Se Hoon & Kim, Jaesoo, 2013. "Price discrimination via information provision," Information Economics and Policy, Elsevier, vol. 25(4), pages 215-224.
    5. Pérez-Amaral, Teodosio & Valarezo, Angel & López, Rafael & Garín-Muñoz, Teresa, 2021. "Digital divides across consumers of internet services in Spain using panel data 2007–2019. Narrowing or not?," Telecommunications Policy, Elsevier, vol. 45(2).
    6. Ha, Jaehyun, 2025. "From online deliveries to travel behavior: Socioeconomic insights from 2009, 2017, and 2022," Transport Policy, Elsevier, vol. 168(C), pages 15-26.
    7. Leise Kelli de Oliveira & Rui Colaço & Gracielle Gonçalves Ferreira de Araújo & João de Abreu e Silva, 2025. "The Role of Walkability in Shaping Shopping and Delivery Services: Insights into E-Consumer Behavior," Logistics, MDPI, vol. 9(3), pages 1-17, July.

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    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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