Presentation on a paper written by Avi Goldfarb and Jeff Prince titled "Internet adoption and usage patterns are different: Implications for the digital divide." Published in Information Economics and Policy, Issue 20, p 2-15 (2008). Presentation given in Communication 300, New Media, University of Washington, March 3, 2008 by Matt Lennert.

1. The results of a study by Avi Goldfarb and Jeff Prince, Cornell University.
Published in Information Economics and Policy, March 2008

2. Does a digital divide exist
between upper and lower
classes in the U.S. for
internet usage?

3. Upper and lower classes

4. Upper and lower classes
• Who has better access to the internet?

5. Upper and lower classes
• Who has better access to the internet?
• Who uses the internet more?

6. Upper and lower classes
• Who has better access to the internet?
• Who uses the internet more?
• How is the internet used?

7. Upper and lower classes
• Who has better access to the internet?
• Who uses the internet more?
• How is the internet used?
• Should internet access be subsidized?

8. Who has better access
to the internet?
Low-income,
High-income,
low or no
high education
education

9. Who has better access
to the internet?
Hint,
it’s me.
Low-income,
High-income,
low or no
high education
education

11. Who uses the internet more?
Low-income,
High-income,
low or no
high education
education

12. Who uses the internet more?
I DO.
Low-income,
High-income,
low or no
high education
education

14. Why do lower income, lower
educated people use the
internet more?
Four possible reasons

15. H1
Do low-income people who
choose to adopt the internet
are those who place a
particularly high value on it?

16. H1
Do low-income people who
choose to adopt the internet
are those who place a
particularly high value on it?
If it costs a lot to get access to the internet,
and you have no money yet still find a way
to get a computer and internet access, it must
be very valuable to you.

17. H2
Do low-income people have
more leisure time?

18. H2
Do low-income people have
more leisure time?
All things being equal, if everyone derives the
same value from the internet—the same utility—then
those with more time on their hands
will use the internet more often.

19. H3
Do low-income people find
the internet more useful
than others?

20. H3
Do low-income people find
the internet more useful
than others?
If low-income people can get services online that they
normally have no access to, then if follows that they
will spend more time online.

21. H4
Do low-income people have
a lower opportunity cost
of leisure time due to
lower wages?

22. H4
Do low-income people have
a lower opportunity cost
of leisure time due to
lower wages?
If both high- and low-income people derive the same
benefit per hour of usage, then it follows that
low-income people will spend more time
online because it costs them less.

23. The results.
H1
H2
H3
H4

24. The results.
H1 • Everyone values the internet the same.
H2
H3
H4

25. The results.
H1 • Everyone values the internet the same.
H2 • Statistics show low- and high-income people
have the same amount of leisure time.
H3
H4

26. The results.
H1 • Everyone values the internet the same.
H2 • Statistics show low- and high-income people
have the same amount of leisure time.
H3 • Low-income people use the internet for gaming
and chat.
H4

27. The results.
H1 • Everyone values the internet the same.
H2 • Statistics show low- and high-income people
have the same amount of leisure time.
H3 • Low-income people use the internet for gaming
and chat.
H4 • That leaves opportunity cost: Time is Money!
High-income, higher educated people use the
internet for e-commerce and research.

28. Okay. So what?
Should internet access be subsidized?
The negative: The internet is like TV. If it’s free or
cheap, less educated, lower income people waste
hours of unproductive time using it.
The positive: Low-income people eventually use
the internet for email, researching, e-commerce,
health information, and e-government. (46%)

29. Conclusion
The authors support subsidies to help
eliminate the American digital divide.
Avi Goldfarb, Jeff Prince. Internet adoption and usage patterns are different: Implications for the
digital divide, Information Economics and Policy 20 (2008), 2-15