Why People Aren't Using Wireless Internet: A Behavioural Economics Approach to Technology Preferences

Punit Ahluwalia, Gregory Gimpel, Upkar Varshney

    Research output: Contribution to journalJournal articleResearchpeer-review


    This paper proposes a new model for understanding the adoption of internet services when competing technological standards can fulfil similar needs. Using prospect theory as its theoretical foundation, the model posits that reference prices, flat rate preference, and status quo bias constitute the perceived sacrifice when users consider adoption of new services such as wireless internet. Perceived sacrifice and perceived quality influence the perceived relative value, which in turn influences the intention to adopt wireless internet. The proposed model and related hypotheses are empirically confirmed through a field study. The paper discusses several implications for telecommunications policy and industry.
    Original languageEnglish
    JournalInternational Journal of Services and Standards
    Issue number3/4
    Pages (from-to)271-294
    Publication statusPublished - 2010


    • Wireless Internet
    • World Wide Web
    • Reference Prices
    • Flat Rate Preferences
    • Perceived Quality
    • Perceived Value
    • Service Organisations
    • Behavioural Economics
    • Technology Preferences
    • Internet Usage
    • Technological Standards
    • Competing Standards
    • Perceived Sacrifices
    • Perceptions
    • New Service Adoption
    • Relative Value
    • Telecommunications Industry
    • Telecommunications Policies
    • Copenhagen
    • Denmark
    • Universities
    • Higher Education
    • Student Surveys
    • Services

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