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