This paper estimates hedonic price indices for dial-up Internet Service Providers ("ISPs") in the United States from November 1993 to January 1999. This was a period of rapid qualitative improvement in Internet access. The paper shows that price indices without any quality adjustment hardly change after 1995, which the paper argues is misleading. Even with rather limited information, the paper estimates dramatic changes in prices from 1993 to 1996. The paper also estimates a decline of 20% in price per unit of ISP quality for the 33 month period between spring 1996 and early 1999.
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