A Double Digital Divide? Two-Sided Markets and HIV Incidence among the Digitally Disadvantaged

Recent work has emphasized the substantial benefits offered by easily searchable, digitized, two sided matching platforms through decreased search costs and reduction of market frictions, but paid relatively limited attention to their negative social welfare implications. In this paper we investigate if the availability of such platforms for the solicitation of casual sex has influenced the incidence rate of HIV. We further examine to whom these negative effects accrue. Using a census of nearly 13 million patients who are subjected to a natural experiment in the state of Florida between 2002 and 2006, findings suggest that the largest negative effect accrues to historically at risk populations (i.e. African Americans, men, and the socio-economic lower class) that, ironically, are also on the disadvantaged side of the digital divide. Disturbingly, we find that populations generally considered at lower risk for HIV, who are also relatively digitally advantaged, are likewise penalized by the presence of the platform. Finally, results show a striking absence of learning and knowledge diffusion about the risks of platform use. These findings have important implications for policy makers and contribute to the literature on the digital divide and the role of the Internet in health.