You're Not Paying Enough for the Internet

Paul Kedrosky cites Goolsbee and Klenow http://siepr.stanford.edu/papers/pdf/05-10.html

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You're Not Paying Enough for the Internet: From a new Stanford economics working paper:

Only about 0.2% of consumer spending in the U.S. ... went for Internet access in 2004 yet time use data indicates that people spend around 10% of their entire leisure time going online... Based on expenditure and time use data and our elasticity estimate, we calculate that consumer surplus from the Internet may be around 2% of full-income, or several thousand dollars per user.