Is There a Coupon Divide? A Study of Technology Adoption in the Digital Television Transition of 2005

At the zip code level, I investigate drivers of adoption for converter boxes funded by the Digital Television Transition of 2005. I find that broadband adoption explains participation in the coupon program. In regression analysis, I include controls for over-the-air television households, coupon redemption rates, broadband availability, location affordability, income, population density, age, and dependents per capita. Broadband adoption may have driven coupon requests. But coupon seekers may have adopted broadband for access to savings. My study does not identify the direction of causation between broadband and coupon requests. However, this data suggests that broadband adoption correlates to preferences for coupon savings. Broadband enhances preferences of householders to seek coupons, deals, and opportunities. By finding a relationship between coupon participation and broadband adoption, I add to the digital divide literature and suggest questions for further study. I review a federal program that spent 160 million dollars to distribute 1.34 billion dollars in coupons redeemable in electronics stores nationwide