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… Expand

Figures, Tables, and Topics 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 monetaryExpand
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 aExpand
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 whichExpand
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 andExpand
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 theExpand
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 consumerExpand
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 theExpand
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 asExpand
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 grossExpand
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 technicalExpand
...
1
2
3
4
5
...

References

SHOWING 1-10 OF 39 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 accessExpand
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, educatedExpand
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. Expand
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.Expand
The Demand for Bandwidth: Evidence from the INDEX Project
The Internet Demand Experiment (INDEX) was a project to measure how much people are willing to pay for different kinds of Internet quality of service (QoS), such as bandwidth or volume of bitsExpand
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 toExpand
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. SpecialExpand
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 standardExpand
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 andExpand
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 ofExpand
...
1
2
3
4
...