A model of demand for the Internet and other information sources is presented that treats the Internet as a production factor employed in producing benefits of search. Based upon the premise that the Internet is most efficient at providing information about functional attributes and price, several propositions are developed about its use and its impact on the use of other information sources. The model is supported by empirical evidence, using the example of Internet deployment in the search for a new automobile.
Ratchford et al. (Thu,) studied this question.