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Business Demand for Broadband Access Capacity

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  • Duffy-Deno, Kevin T

Abstract

Using data garnered from a quarterly survey of U.S. business establishments from 2Q2000 through 1Q2001, the study estimates an aggregate model of business demand for broadband access capacity. The primary goal is to estimate price elasticities for the demand for access capacity conditional on a business establishment having made the decision to adopt some form of broadband access. The primary findings are (1) on average, the demand for broadband access capacity is price inelastic; (2) the sensitivity to price differs substantially across establishments of different sizes with small establishments exhibiting the greatest sensitivity to price; and (3) the estimated elasticities have important implications for public policies designed to extend broadband networks to unserved areas. Copyright 2003 by Kluwer Academic Publishers

Suggested Citation

  • Duffy-Deno, Kevin T, 2003. "Business Demand for Broadband Access Capacity," Journal of Regulatory Economics, Springer, vol. 24(3), pages 359-372, November.
    • Handle: RePEc:kap:regeco:v:24:y:2003:i:3:p:359-72
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    Citations

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    Cited by:

    1. Mack, Elizabeth A. & Grubesic, Tony H., 2009. "Forecasting broadband provision," Information Economics and Policy, Elsevier, vol. 21(4), pages 297-311, November.
    2. repec:asg:wpaper:1025 is not listed on IDEAS
    3. Elizabeth A. Mack & Luc Anselin & Tony H. Grubesic, 2011. "The importance of broadband provision to knowledge intensive firm location," Regional Science Policy & Practice, Wiley Blackwell, vol. 3(1), pages 17-35, March.
    4. Victor Glass & Stela Stefanova, 2010. "An empirical study of broadband diffusion in rural America," Journal of Regulatory Economics, Springer, vol. 38(1), pages 70-85, August.
    5. Elizabeth A. Mack, 2014. "Broadband and knowledge intensive firm clusters: Essential link or auxiliary connection?," Papers in Regional Science, Wiley Blackwell, vol. 93(1), pages 3-29, March.
    6. repec:asg:wpaper:1019 is not listed on IDEAS
    7. Elizabeth A. Mack, 2015. "Variations in the Broadband-Business Connection across the Urban Hierarchy," Growth and Change, Wiley Blackwell, vol. 46(3), pages 400-423, September.
    8. Grubesic, Tony H., 2006. "A spatial taxonomy of broadband regions in the United States," Information Economics and Policy, Elsevier, vol. 18(4), pages 423-448, November.
    9. Garbacz, Christopher & Thompson, Herbert Jr., 2005. "Universal telecommunication service: A world perspective," Information Economics and Policy, Elsevier, vol. 17(4), pages 495-512, October.
    10. Barrie R. Nault & Steffen Zimmermann, 2019. "Balancing Openness and Prioritization in a Two-Tier Internet," Information Systems Research, INFORMS, vol. 30(3), pages 745-763, September.

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