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Empirical analysis identifies adopter characteristics and impactful factors in Internet subscription dynamics.
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.
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Madden et al. (2000) studied this question.
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