The economic value of investing in broadband infrastructure Gabriel Ahlfeldt, Pantelis Koutroumpis, and Tommaso Valletti conducted a study that used the differences in house prices to deduce the value of broadband infrastructure in England. They found that, on average, when a property moved from a slow dial-up connection to ADSL with speeds of up to 8Mb/s, property prices increased by 2.8%. Does supply and demand theory explain their findings? Why do you think price gains were greater in more densely populated areas?

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Answer Yes supply and demand theory can help explain the findings of Ahlfeldt Koutroumpis and Vallettis study on the economic value of investing in br... View the full answer