• Corpus ID: 16937469

The Attention Economy: Measuring the Value of Free Digital Services on the Internet

@inproceedings{Brynjolfsson2012TheAE,
  title={The Attention Economy: Measuring the Value of Free Digital Services on the Internet},
  author={Erik Brynjolfsson and Joohee Oh},
  booktitle={ICIS},
  year={2012}
}
Over the past decade, there has been an explosion of digital services on the Internet, from Google and Wikipedia to Facebook and YouTube. However, the value of these innovations is difficult to quantify, because consumers pay nothing to use them. We develop a new framework to measure the value of free services using the insight that even when people do not pay cash, they must still pay “attention,” or time. Using our model, we estimate the increase in consumer surplus created by free internet… 

Figures and Tables from this paper

The Value of the Internet for Consumers

Several studies have examined the market value of paid-for internet services and internet access. This paper estimates the value of leisure time spent online for which the consumer pays no monetary

Has the Digital Divide Been Reversed? Evidence from Five EU Countries

This paper examines whether there is a digital divide in the use of the internet in general and for specific purposes (leisure, improving human capital and obtaining goods and services). It uses a

Digital Divide in Internet Usage: Evidence from Five EU Countries 1

This paper examines the digital divide in internet usage in general and for specific purposes (leisure, improving human capital and obtaining goods and services). It uses a unique dataset which

The Digital Economy, GDP and Consumer Welfare: Theory and Evidence

The welfare effects of the digital economy are not well-measured by our current national accounting framework. In particular, a key feature of the digital economy is the proliferation of new and

The Digital Economy, New Products and Consumer Welfare

Benefits of the Digital Economy are evident in everyday life, but there are significant concerns that these benefits may not be appropriately reflected in official statistics. The measurement of the

Accounting for Free Digital Services and Household Production – An Application to Facebook

Results from choice experiments have revealed that individuals attribute significant value to digitally-enabled services such as those derived from the use of social media. We integrate this consumer

Measuring the 'Free' Digital Economy within the GDP and Productivity Accounts

We develop an experimental methodology that values ”free” digital content through the lens of a production account and is consistent with the framework of the national accounts. We build upon the

What are We Not Doing When We&Apos;Re Online

The Internet has radically transformed the way we live our lives. The net changes in consumer surplus and economic activity, however, are difficult to measure because some online activities, such as

Valuing 'Free' Media in GDP: An Experimental Approach

“Free” consumer entertainment and information from the Internet, largely supported by advertising revenues, has had a major impact on consumer behavior. Some economists believe that measured gross

Accounting for Growth in the Age of the Internet: The Importance of Output-Saving Technical Change

We extend the conventional neoclassical production and growth framework, with its emphasis on total factor productivity as the primary macroeconomic mechanism of innovation, to allow for technical
...

References

SHOWING 1-10 OF 38 REFERENCES

Valuing Consumer Products by the Time Spent Using Them: An Application to the Internet

For some goods, the main cost of buying the product is not the price but rather the time it takes to use them. Only about 0.2% of consumer spending in the U.S., for example, went for Internet access

Internet Adoption and Usage Patterns are Different: Implications for the Digital Divide

There is a well-documented "digital divide" in internet connection. We ask whether a similar divide exists for internet usage. Using a survey of 18,439 Americans, we find that high-income, educated

The Contribution of Information Technology to Consumer Welfare

TLDR
Four measures of consumer welfare are estimated, including Marshallian surplus, exact surplus based on compensated (Hicksian) demand curves, a non-parametric estimate, and a value based on the theory of index numbers, implying that the value created for consumers from spending on IT is about three times as large as the amount paid to producers of IT equipment.

Household Demand for Broadband Internet in 2010

Abstract This paper uses data from a nationwide survey administered during late 2009 and early 2010 to estimate a random utility model of household preferences for broadband Internet service.

The Demand for Bandwidth: Evidence from the INDEX Project

TLDR
It is found that most users placed a surprisingly low value on bandwidth, though certain kinds of users were willing to pay substantially more than others.

United States Demand for Internet Access

This study uses survey data from 2003 to empirically assess United States residential demand for Internet access. Econometric results indicate that service reliability, speed, and the ability to

Beyond GDP: The Quest for a Measure of Social Welfare

This paper critically examines the various approaches to the measurement of individual well-being and social welfare that have been considered for the construction of alternatives to GDP. Special

Measuring the Welfare Gain from Personal Computers

The welfare gain to consumers from the introduction of personal computers is estimated here. A simple model of consumer demand is formulated that uses a slightly modified version of standard

The Valuation of the Social Income

THE Social Income consists of a collection of goods and services valued in terms of money. Its precise definition thus involves two problems: one of the correct enumeration of the real goods and

Measuring the Spillovers from Technical Advance: Mainframe Computers inFinancial Services

Measuring the social gains from recent technological advances is difficult because there are no output indexes from some important adopters. Measurement methods that infer the willingness-to-pay of