Valuation of Digital Goods During the Coronavirus Outbreak in the United States
26 Pages Posted: 24 Apr 2020 Last revised: 4 May 2020
Date Written: April 29, 2020
We examine how the coronavirus pandemic affected consumer valuation of digital services. Governments responded to the pandemic with various forms of lockdowns and social distancing, leading to increased dependence on digital services for work, social engagement, and leisure activities. We identify consumer valuations through surveys where respondents express their reservation prices for digital services such as email, search, and social media. We compare our results to surveys done in 2016 and 2017 and find an about six-fold increase in valuations.
Keywords: COVID-19, consumer surplus, digital goods, GDP, coronavirus
JEL Classification: D12, L86, E01
Suggested Citation: Suggested Citation