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An Econometric Study of the Demand for Access to the Internet

  • Donald J. Kridel
  • Paul N. Rappoport
  • Lester D. Taylor
Chapter
Part of the Topics in Regulatory Economics and Policy Series book series (TREP, volume 33)

Abstract

The increased popularity and explosive growth of the Internet have been widely tracked. A recent Business Week survey estimates that 40 million people are internet users, which is in line with an April 1997 FIND/SVP survey estimate that there are among 40-45 million adult users. 1 These numbers are up sharply from estimates obtained from surveys conducted in the fall of 1996. A November Louis Harris & Associates’ survey, for example, estimated that there were 35 million adult users, while IDC Research estimated that adult users in October 1996 were 31.4 million.2 PNR and Associates’ most recent estimate of households that use the Internet is 16%, which compares with an estimate of 14.8% in 1996. 3 These percentages are consistent with the Harris estimates. Thus, there is ample evidence to support the increased popularity of the Internet and the resulting demand in Internet applications.

Keywords

Internet Access Price Elasticity Internet Service Provider Telecommunication Industry Online Access 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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References

  1. Larson, A.C., Lehman, D.E., and Weisman, D.L., 1990. “A General Theory of Point-to-Point Long Distance Demand,” in Telecommunications Demand Modelling, ed. by A. de Fontenay, M.H. Shugard, and D.S. Sibley, North-Holland Publishing Co., Amsterdam.Google Scholar
  2. Littlechild, S.C., 1975. “Two-Part Tariffs and Consumption Externalities,” Bell Journal of Economics, Vol. 6, No.2, Autumn 1975, pp. 191–210.CrossRefGoogle Scholar
  3. Rappoport, P.R., L.D. Taylor, D.J. Kridel, and W. Serad, 1998. “The Demand for Internet and On-line Access,” Telecommunications Transformation: Technology, Strategy, and Policy, edited by Erik Bohlin and Stanford L. Levin, IOS Press, pp. 205–218.Google Scholar
  4. Rohlfs, J., 1974. “A Theory of Interdependent Demand for a Communications Service,” Bell Journal of Economics and Management Science, Vol. 5, No. 1, Spring, pp. 16–37.CrossRefGoogle Scholar
  5. Rupp, B., R. Edell, and P. Varaiya, 1998. “Towards An Integrated Services Internet: The Demand Side of Things-Early Results From The INDEX Project” presented at the 12th Biennial Meetings of the International Telecommunications Society, Stockholm, Sweden June.Google Scholar
  6. Taylor, L.D., 1994. Telecommunications Demand in Theory and Practice, Kluwer Academic Publishers.Google Scholar

Copyright information

© Springer Science+Business Media New York 1999

Authors and Affiliations

  • Donald J. Kridel
    • 1
  • Paul N. Rappoport
    • 2
  • Lester D. Taylor
    • 3
  1. 1.University of Missouri - St. LouisUSA
  2. 2.Temple UniversityUSA
  3. 3.University of ArizonaUSA

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