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The Digital Divide: Current and Future Research Directions - MISRC ...

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with broadb<strong>and</strong> connections are more likely to spend more time on the Internet than those<br />

with dial-up connections. Further, the ability to connect via a broadb<strong>and</strong> connection<br />

impacts what people do online. <strong>The</strong> authors hypothesize that broadb<strong>and</strong> users are better<br />

able to make use of the Internet <strong>and</strong> therefore gain more value from use. As the Internet<br />

becomes more critical in performing day-to-day activities, those with dial-up access will<br />

be left behind in terms of efficiency <strong>and</strong> capability. As can be seen, this study takes a<br />

technical design perspective to inform public policy makers.<br />

Howard et al. [2001] make use of the Pew Internet data from 2001 to provide<br />

several key insights into how people use the Internet. In particular, more experienced<br />

users are much more likely to do online transactions <strong>and</strong> manage their money online<br />

compared to more recent adopters of the Internet. Further, more experienced users are<br />

more likely to have a higher socio-economic status; therefore, education level <strong>and</strong> income<br />

are predictors of those who engage in e-commerce related activities. <strong>The</strong>y suggest that<br />

people with superior technical access <strong>and</strong> usage skills are emerging as a class of online<br />

elite users which they call “Netizens.” <strong>The</strong>se individuals represent approximately the<br />

16% most experienced Internet users. Overall, these people are more likely to engage in<br />

online commerce activities <strong>and</strong> use powerful e-commerce functionalities such as<br />

recommender services <strong>and</strong> online auctions. As a group, they account for a quarter of all<br />

online traffic, but 45% of those trading stocks online, 40% of those participating in online<br />

auctions, 34% of those downloading financial information, <strong>and</strong> 29% of those engaging in<br />

online purchasing ⎯ all from a group representing only 8% of Americans.<br />

It is reasonable to believe that there is considerable economic surplus being<br />

derived by users of sophisticated e-commerce functionalities such as online investing,<br />

auctions, recommender services <strong>and</strong> personalization technology. Bapna et al. [2005]<br />

estimate that the annual consumer surplus accruing to eBay users is roughly $6.5 billion.<br />

Based on the research to date, we propose that those most in need of finding ways to get<br />

ahead financially will be less likely to make use of the more powerful <strong>and</strong> beneficial<br />

online commerce features, thus leading to further socio-economic stratification. If online<br />

investing, auction participation, <strong>and</strong> highly-personalized online shopping activities<br />

generate economic value for the user, then the existence of these powerful online<br />

commerce functionalities, which for one reason or another are not widely adopted, is<br />

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