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Some economic and social aspects of residential internet use in Australia

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  • 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.

Suggested Citation

  • Madden, Gary G & Savage, Scott J, 2000. "Some economic and social aspects of residential internet use in Australia," MPRA Paper 11158, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:11158
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    References listed on IDEAS

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    1. Jeffrey K. MacKie-Mason & Hal Varian, 1994. "Economic FAQs About the Internet," Journal of Economic Perspectives, American Economic Association, vol. 8(3), pages 75-96, Summer.
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    6. MacKie-Mason, J.K. & Varian, H.L., 1993. "Some Economists of the Internet," Papers 93-16, Michigan - Center for Research on Economic & Social Theory.
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    Cited by:

    1. Campaña, Juan Carlos & Ortega, Raquel, 2020. "Time devoted by the elderly to the Internet: Influence of personal and family variables in Mexico and Chile," MPRA Paper 100977, University Library of Munich, Germany.
    2. Moudi Almousa, 2020. "The Relationship between Experience and Demographic Variables on Concern with Apparel Fit in Online Context," International Business Research, Canadian Center of Science and Education, vol. 13(1), pages 11-17, January.
    3. Panopoulos, Anastasios P. & Sarri, Katerina, 2013. "E-mentoring: The adoption process and innovation challenge," International Journal of Information Management, Elsevier, vol. 33(1), pages 217-226.
    4. Molina, Jose Alberto & Campaña, Juan Carlos & Ortega, Raquel, 2016. "Internet and the elderly in Spain: Time dedicated to search and communications," MPRA Paper 74419, University Library of Munich, Germany.

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    More about this item

    Keywords

    Residential internet use in Australia; economic and social aspects;

    JEL classification:

    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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