IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/11158.html
   My bibliography  Save this paper

Some economic and social aspects of residential internet use in Australia

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/11158/1/MPRA_paper_11158.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. 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.
    2. 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.
    3. 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.
    4. Shenker, Scott & Clark, David & Estrin, Deborah & Herzog, Shai, 1996. "Pricing in computer networks: Reshaping the research agenda," Telecommunications Policy, Elsevier, vol. 20(3), pages 183-201, April.
    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.
    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.
    7. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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. 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.
    3. 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.
    4. 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.
    5. Alejandro Klein, 2024. "Ageing, Empowerment and Technology New Opportunities for Cultural Traditions?," International Journal of Social Work, Macrothink Institute, vol. 11(1), pages 54-69, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Silva, Simone & Badasyan, Narine & Busby, Michael, 2018. "Diversity and digital divide: Using the National Broadband Map to identify the non-adopters of broadband," Telecommunications Policy, Elsevier, vol. 42(5), pages 361-373.
    2. Rodriguez-Andres, Antonio & Perez-Amaral, Teodosio, 1998. "Demand for telephone lines and universal service in Spain," Information Economics and Policy, Elsevier, vol. 10(4), pages 501-514, December.
    3. Mirta B. Gordon & Jean-Pierre Nadal & Denis Phan & Viktoriya Semeshenko, 2012. "Entanglement between Demand and Supply in Markets with Bandwagon Goods," Papers 1209.1321, arXiv.org, revised Dec 2012.
    4. Barman, Hemanta & Dutta, Mrinal Kanti & Nath, Hiranya K., 2018. "The telecommunications divide among Indian states," Telecommunications Policy, Elsevier, vol. 42(7), pages 530-551.
    5. López, Rafael & Valarezo, Ángel & Pérez-Amaral, Teodosio, 2023. "Unleashing the potential of online learning in Spain: An econometric analysis," Telecommunications Policy, Elsevier, vol. 47(6).
    6. Kölln, Volker, 2011. "Produktdiffusion in TIMES-Märkten: Innovation, Kompatibilität und Timing bei Netzeffektgütern," Discussion Papers on Strategy and Innovation 11-01, Philipps-University Marburg, Department of Technology and Innovation Management (TIM).
    7. Pérez-Amaral, Teodosio & Valarezo, Angel & López, Rafael & Garín-Muñoz, Teresa & Herguera, Iñigo, 2019. "E-commerce and digital divide in Spain using individual panel data 2008-2016," 30th European Regional ITS Conference, Helsinki 2019 205206, International Telecommunications Society (ITS).
    8. Matttia De' Grassi Di Pianura, 2012. "Subsidising network technology adoption the case of publishers and E-readers," Working Papers hal-00714447, HAL.
    9. Garin Munoz, Teresa, 1996. "Demand for national telephone traffic in Spain from 1985-1989: An econometric study using provincial panel data," Information Economics and Policy, Elsevier, vol. 8(1), pages 51-73, March.
    10. Denis Phan, 2006. "Discrete Choices under Social Influence:Generic Properties," Post-Print halshs-00105857, HAL.
    11. López, Rafael & Valarezo, Ángel & Pérez-Amaral, Teodosio, 2021. "Online education adoption in Spain 2008-2019. Drivers and impediments," 23rd ITS Biennial Conference, Online Conference / Gothenburg 2021. Digital societies and industrial transformations: Policies, markets, and technologies in a post-Covid world 238038, International Telecommunications Society (ITS).
    12. Gergely Biczók & Sándor Kardos & Tuan Trinh, 2010. "Pricing Internet access in the presence of user loyalty," Netnomics, Springer, vol. 11(2), pages 119-147, July.
    13. Amaral, Teodosio Perez & Gonzalez, Francisco Alvarez & Jimenez, Bernardo Moreno, 1995. "Business telephone traffic demand in Spain: 1980-1991, an econometric approach," Information Economics and Policy, Elsevier, vol. 7(2), pages 115-134, June.
    14. Kanemoto, Yoshitsugu, 2000. "Price and quantity competition among heterogeneous suppliers with two-part pricing: applications to clubs, local public goods, networks, and growth controls," Regional Science and Urban Economics, Elsevier, vol. 30(6), pages 587-608, December.
    15. Jacques Crémer & Patrick Rey & Jean Tirole, 2000. "Connectivity in the Commercial Internet," Journal of Industrial Economics, Wiley Blackwell, vol. 48(4), pages 433-472, December.
    16. Steffen Hoernig, 2008. "Market Penetration and Late Entry in Mobile Telephony," Working Papers 08-38, NET Institute, revised Oct 2008.
    17. Madden, Gary & Savage, Scott & Simpson, Michael, 1996. "Information Inequality and Broadband Network Access: An Analysis of Australian Household Data," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 5(4), pages 1049-1066.
    18. 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.
    19. Viktoriya Semeshenko & Alexis Garapin & Bernard Ruffieux & Mirta Gordon, 2010. "Information-driven coordination: experimental results with heterogeneous individuals," Theory and Decision, Springer, vol. 69(1), pages 119-142, July.
    20. Pérez-Amaral, Teodosio & Valarezo, Angel & López, Rafael & Garín-Muñoz, Teresa & Herguera, Iñigo, 2020. "E-commerce by individuals in Spain using panel data 2008–2016," Telecommunications Policy, Elsevier, vol. 44(4).

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:11158. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.