'Relevance' and 'Price' as Determinants of Internet Non-Adoption: A Review of the Evidence

Abstract

Explaining non-adoption for Internet service has led to a debate about whether non-adopters place a low value on Internet use or whether the price of connectivity is too high. A thorough analysis of survey data reveals that non-price factors dominate price as the determining factor for not using the Internet at home. Still, as price is a legitimate factor of adoption, if surveys are to be truly useful for policymaking, then they must abandon the current question seeking explanations for non-adoption and gather data that permit an estimate of price sensitivity.