Ability, location and household demand for Internet bandwidth

摘要: Abstract This paper examines consumer preferences for Internet bandwidth, focusing on technical ability and urban/rural location as sources of preference heterogeneity. An economic model is outlined that shows decreases the effective price bandwidth. As a result this decrease, part total effect an increase in will always be demand The implication empirically investigated with econometric approach overcomes limitations aggregated data currently available to describe preferences. Results show high-ability, urban consumers are willing pay substantive monthly premium improvement bandwidth relative rural consumers.