benefits Archives — LIRNEasia

The value of the Internet

Posted on July 10, 2013  /  0 Comments

It’s very difficult to measure the true value of the Internet. It’s not that one Internet search is equal to another in value. Information obtained from the Internet does not always lead to good or bad outcomes, by itself. It is combined with other inputs. And so on.

How much is the Internet worth?

Posted on March 9, 2013  /  0 Comments

The Economist has an interesting discussion of several academic papers addressing aspects of the question. Shane Greenstein of Northwestern University and Ryan McDevitt of the University of Rochester calculated the consumer surplus generated by the spread of broadband access (which ought to include the surplus generated by internet services, since that is why consumers pay for broadband). They did so by constructing a demand curve. Say that in 1999 a person pays $20 a month for internet access. By 2006 the spread of broadband has lowered the real price to $17.