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Is Google the Next Microsoft: Competition, Welfare and Regulation in Online Search

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  • Pollock Rufus

    (University of Cambridge)

Abstract

The rapid growth of online search and its centrality to the ecology of the Internet pose important questions: why is the search engine market so concentrated, and will it evolve towards monopoly? What implications does this concentration have for consumers, search engines, and advertisers? Does search require regulation, and, if so, in what form? This paper supplies empirical and theoretical material with which to examine these questions. In particular, we (a) show that the already large levels of concentration are likely to continue; (b) identify the consequences, negative and positive, of this outcome; and (c) discuss the regulatory interventions that policy-makers could use to address these.

Suggested Citation

  • Pollock Rufus, 2010. "Is Google the Next Microsoft: Competition, Welfare and Regulation in Online Search," Review of Network Economics, De Gruyter, vol. 9(4), pages 1-31, December.
    • Handle: RePEc:bpj:rneart:v:9:y:2010:i:4:n:4
    DOI: 10.2202/1446-9022.1240
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    Cited by:

    1. Cédric Argenton & Jens Prüfer, 2012. "Search Engine Competition With Network Externalities," Journal of Competition Law and Economics, Oxford University Press, vol. 8(1), pages 73-105.
    2. Engelhardt Sebastian von & Freytag Andreas & Köllmann Volker, 2013. "Wettbewerbspolitischer Handlungsbedarf bei der Verknüpfung von zweiseitigen Märkten im Internet: Der Fall Google," Zeitschrift für Wirtschaftspolitik, De Gruyter, vol. 62(3), pages 311-332, December.
    3. Greg Taylor, 2013. "Search Quality and Revenue Cannibalization by Competing Search Engines," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 22(3), pages 445-467, September.
    4. Naudé, Wim, 2023. "Destructive Digital Entrepreneurship," IZA Discussion Papers 16483, Institute of Labor Economics (IZA).
    5. Justus Haucap & Ulrich Heimeshoff, 2014. "Google, Facebook, Amazon, eBay: Is the Internet driving competition or market monopolization?," International Economics and Economic Policy, Springer, vol. 11(1), pages 49-61, February.
    6. Dolata, Ulrich, 2014. "Märkte und Macht der Internetkonzerne: Konzentration - Konkurrenz - Innovationsstrategien," Research Contributions to Organizational Sociology and Innovation Studies, SOI Discussion Papers 2014-04, University of Stuttgart, Institute for Social Sciences, Department of Organizational Sociology and Innovation Studies.
    7. Franco Salerno, 2023. "The Greta Thunberg Effect on Climate Equity: A Worldwide Google Trend Analysis," Sustainability, MDPI, vol. 15(7), pages 1-13, April.
    8. Haucap, Justus, 2015. "Ordnungspolitik und Kartellrecht im Zeitalter der Digitalisierung," DICE Ordnungspolitische Perspektiven 77, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    9. Katarina Barley & Achim Wambach & Ralf Dewenter & Christian Hildebrandt & Hamidreza Hosseini & Holger Schmidt & Peter Buxmann, 2018. "Big Data as a Business Model: How Should we Deal with the Power of Internet Companies?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 71(10), pages 03-21, May.
    10. White, Alexander, 2013. "Search engines: Left side quality versus right side profits," International Journal of Industrial Organization, Elsevier, vol. 31(6), pages 690-701.
    11. Aktas, Nihat & de Bodt, Eric & Roll, Richard, 2013. "MicroHoo: Deal failure, industry rivalry, and sources of overbidding," Journal of Corporate Finance, Elsevier, vol. 19(C), pages 20-35.
    12. Dolata, Ulrich, 2017. "Apple, Amazon, Google, Facebook, Microsoft: Market concentration - competition - innovation strategies," Research Contributions to Organizational Sociology and Innovation Studies, SOI Discussion Papers 2017-01, University of Stuttgart, Institute for Social Sciences, Department of Organizational Sociology and Innovation Studies.
    13. Budzinski, Oliver, 2016. "Aktuelle Herausforderungen der Wettbewerbspolitik durch Marktplätze im Internet," Ilmenau Economics Discussion Papers 103, Ilmenau University of Technology, Institute of Economics.
    14. Jean-Pascal Bassino & Aurélien Faravelon & Stéphane Grumbach, 2015. "Cross-Border Data Exchanges : The Rise of Platform Economy in Asia," Post-Print hal-01245080, HAL.

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