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The Diffusion of the Internet and the Geography of the Digital Divide in the United States

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  • Shane Greenstein
  • Jeff Prince

Abstract

This paper analyses the rapid diffusion of the Internet across the United States over the past decade for both households and firms. We put the Internet's diffusion into the context of economic diffusion theory where we consider costs and benefits on the demand and supply side. We also discuss several pictures of the Internet's physical presence using some of the current main techniques for Internet measurement. We highlight different economic perspectives and explanations for the digital divide, that is, unequal availability and use of the Internet.

Suggested Citation

  • Shane Greenstein & Jeff Prince, 2006. "The Diffusion of the Internet and the Geography of the Digital Divide in the United States," NBER Working Papers 12182, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:12182
    Note: IO PR
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    Cited by:

    1. Vergara, Sebastián & Grazzi, Matteo, 2011. "ICT access in Latin America. evidence from household level," MPRA Paper 33266, University Library of Munich, Germany.
    2. Stenberg, Peter L., 2018. "The purchase of Internet subscriptions in Native American households," Telecommunications Policy, Elsevier, vol. 42(1), pages 51-60.
    3. Elizabeth J. Altman & Frank Nagle & Michael L. Tushman, 2013. "Innovating Without Information Constraints: Organizations, Communities, and Innovation When Information Costs Approach Zero," Harvard Business School Working Papers 14-043, Harvard Business School, revised Sep 2014.
    4. Vergara, Sebastián & Rovira, Sebastián & Balboni, Mariana, 2011. "ICT in Latin America: A Microdata Analysis," MPRA Paper 34598, University Library of Munich, Germany.
    5. Soogwan Doh & Roger R Stough, 2010. "Analysis of the Impact of the Perceived Usefulness of ICT on the Digital Divide Between Disabled and Non-Disabled People in South Korea," International Review of Public Administration, Taylor & Francis Journals, vol. 14(3), pages 53-70, January.
    6. Susan Athey & Scott Stern, 2015. "The Nature and Incidence of Software Piracy: Evidence from Windows," NBER Chapters, in: Economic Analysis of the Digital Economy, pages 443-477, National Bureau of Economic Research, Inc.
    7. Rajeev Goel & Michael Nelson, 2009. "Determinants of software piracy: economics, institutions, and technology," The Journal of Technology Transfer, Springer, vol. 34(6), pages 637-658, December.
    8. Shane Greenstein, 2006. "Innovation and the Evolution of Market Structure for Internet Access in the United States," Discussion Papers 05-018, Stanford Institute for Economic Policy Research.
    9. Peter Mayerhofer & Oliver Fritz & Dieter Pennerstorfer, 2010. "Dritter Bericht zur internationalen Wettbewerbsfähigkeit Wiens," WIFO Studies, WIFO, number 42430.
    10. Stenberg, Peter L. & Morehart, Mitchell J. & Vogel, Stephen J. & Cromartie, John & Breneman, Vincent E. & Brown, Dennis M., 2009. "Broadband Internet's Value for Rural America," Economic Research Report 55944, United States Department of Agriculture, Economic Research Service.
    11. Julian Hidalgo & Michelle Sovinsky, 2023. "Internet (Power) to the People: How to Bridge the Digital Divide," CRC TR 224 Discussion Paper Series crctr224_2023_461, University of Bonn and University of Mannheim, Germany.
    12. Huang, Ting Ting & Sun, Bruce Qiang, 2016. "The impact of the Internet on global industry: New evidence of Internet measurement," Research in International Business and Finance, Elsevier, vol. 37(C), pages 93-112.
    13. Dinterman, Robert & Renkow, Mitch, 2017. "Evaluation of USDA's Broadband Loan Program: Impacts on broadband provision," Telecommunications Policy, Elsevier, vol. 41(2), pages 140-153.
    14. Dolata, Ulrich, 2008. "The transformative capacity of new technologies. How innovations affect sectoral change: Conceptual considerations," MPIfG Discussion Paper 08/2, Max Planck Institute for the Study of Societies.
    15. Stenberg, Peter L., 2014. "The Farm Bill and Rural Economies: Broadband Investment Over the last Decade," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 173277, Agricultural and Applied Economics Association.
    16. Guido De Blasio, 2008. "Urban–Rural Differences in Internet Usage, e‐Commerce, and e‐Banking: Evidence from Italy," Growth and Change, Wiley Blackwell, vol. 39(2), pages 341-367, June.
    17. Peter Stenberg, 2011. "Investment in Rural Broadband Technologies," ERSA conference papers ersa11p1028, European Regional Science Association.
    18. David Cuberes, 2013. "Are Internet and Face-to-Face Contacts Complements or Substitutes? Evidence from Internet Traffic between Cities," Working Papers 2013010, The University of Sheffield, Department of Economics.
    19. Schleife, Katrin, 2010. "What really matters: Regional versus individual determinants of the digital divide in Germany," Research Policy, Elsevier, vol. 39(1), pages 173-185, February.
    20. Dolata, Ulrich, 2009. "Technological innovations and sectoral change: Transformative capacity, adaptability, patterns of change: An analytical framework," Research Policy, Elsevier, vol. 38(6), pages 1066-1076, July.
    21. Lissitsa, Sabina & Kol, Ofrit, 2016. "Generation X vs. Generation Y – A decade of online shopping," Journal of Retailing and Consumer Services, Elsevier, vol. 31(C), pages 304-312.
    22. Hitt, Lorin & Tambe, Prasanna, 2007. "Broadband adoption and content consumption," Information Economics and Policy, Elsevier, vol. 19(3-4), pages 362-378, October.

    More about this item

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • L8 - Industrial Organization - - Industry Studies: Services
    • R0 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General

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