Online price discrimination hits older, unemployed, and female consumers hardest.
The digital divide in online activities may not just be about Internet access, but also about how well people can search for information online. A study on UK Internet motor insurance prices found that older, unemployed, retired, or female consumers face higher price differences due to weaker search abilities. This means that simply improving Internet access may not solve the digital divide issue. Policymakers should consider helping individuals improve their online search skills in addition to providing better Internet access.