Internet Adoption and Use

Network economics suggests that Internet growth may be explained by an externality. This study empirically tests for the presence of such an externality, and analyses a cross-section of Internet subscribers to identify adopter characteristics, and applications fuelling early subscription. The results confirm that the establishment of a secure base of commercial users generates endogenous growth. Further, the analysis of Internet subscribers suggests that access pricing and the availability of valued applications are important factors for inducing subscription.