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Digital Divide
 

Digital Divide

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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 ...

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.

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    Digital Divide Digital Divide Presentation Transcript

    • The results of a study by Avi Goldfarb and Jeff Prince, Cornell University. Published in Information Economics and Policy, March 2008
    • Does a digital divide exist between upper and lower classes in the U.S. for internet usage?
    • Upper and lower classes
    • Upper and lower classes • Who has better access to the internet?
    • Upper and lower classes • Who has better access to the internet? • Who uses the internet more?
    • Upper and lower classes • Who has better access to the internet? • Who uses the internet more? • How is the internet used?
    • 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?
    • Who has better access to the internet? Low-income, High-income, low or no high education education
    • Who has better access to the internet? Hint, it’s me. Low-income, High-income, low or no high education education
    • Who uses the internet more? Low-income, High-income, low or no high education education
    • Who uses the internet more? I DO. Low-income, High-income, low or no high education education
    • Why do lower income, lower educated people use the internet more? Four possible reasons
    • H1 Do low-income people who choose to adopt the internet are those who place a particularly high value on it?
    • 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.
    • H2 Do low-income people have more leisure time?
    • 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.
    • H3 Do low-income people find the internet more useful than others?
    • 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.
    • H4 Do low-income people have a lower opportunity cost of leisure time due to lower wages?
    • 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.
    • The results. H1 H2 H3 H4
    • The results. H1 • Everyone values the internet the same. H2 H3 H4
    • 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
    • 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
    • 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.
    • 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%)
    • 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