Is Google the next Microsoft? Competition, Welfare and Regulation in Internet Search
AbstractThe rapid growth of online search and its centrality to the ecology of the Internet raise many questions for economists to answer: 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 (c) discuss the regulatory interventions that policy-makers could use to address these.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 0921.
Date of creation: 09 May 2009
Date of revision:
Contact details of provider:
Web page: http://www.econ.cam.ac.uk/index.htm
Search Engine; Regulation; Competition; Antitrust; Technology;
Other versions of this item:
- Pollock, Rufus, 2008. "Is Google the next Microsoft? Competition, Welfare and Regulation in Internet Search," MPRA Paper 8885, University Library of Munich, Germany.
- L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
- L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
- L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-06-17 (All new papers)
- NEP-COM-2009-06-17 (Industrial Competition)
- NEP-ICT-2009-06-17 (Information & Communication Technologies)
- NEP-IND-2009-06-17 (Industrial Organization)
- NEP-REG-2009-06-17 (Regulation)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Glenn Ellison & Sara Fisher Ellison, 2004.
"Search, Obfuscation, and Price Elasticities on the Internet,"
NBER Working Papers
10570, National Bureau of Economic Research, Inc.
- Glenn Ellison & Sara Fisher Ellison, 2009. "Search, Obfuscation, and Price Elasticities on the Internet," Econometrica, Econometric Society, vol. 77(2), pages 427-452, 03.
- Susan Athey & Glenn Ellison, 2007.
"Position Auctions with Consumer Search,"
122247000000001633, UCLA Department of Economics.
- Yongmin Chen & Chuan He, 2011.
"Paid Placement: Advertising and Search on the Internet,"
Royal Economic Society, vol. 121(556), pages F309-F328, November.
- Yongmin Chen & Chuan He, 2006. "Paid Placement: Advertising and Search on the Internet," Working Papers 06-02, NET Institute, revised Sep 2006.
- Gandal, Neil, 2000.
"The Dynamics of Competition in the Internet Search Engine Market,"
Competition Policy Center, Working Paper Series
qt8jk0904s, Competition Policy Center, Institute for Business and Economic Research, UC Berkeley.
- Gandal, Neil, 2001. "The dynamics of competition in the internet search engine market," International Journal of Industrial Organization, Elsevier, vol. 19(7), pages 1103-1117, July.
- Neil Gandal, 2001. "The Dynamics of Competition in the Internet Search Engine Market," Microeconomics 0012003, EconWPA.
- Gandal, Neil, 2001. "The Dynamics of Competition in the Internet Search Engine Market," Department of Economics, Working Paper Series qt0h17g08v, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Gandal, N., 2000. "The Dynamics of Competition in the Internet Search Engine Market," Papers 1-2000, Tel Aviv.
- Volker Nocke & Martin Peitz & Konrad Stahl, 2004.
PIER Working Paper Archive
04-029, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
- Nocke, Volker & Peitz, Martin & Stahl, Konrad, 2004. "Platform Ownership," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 16, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
- Nocke, Volker & Peitz, Martin & Stahl, Konrad O., 2004. "Platform Ownership," CEPR Discussion Papers 4657, C.E.P.R. Discussion Papers.
- Jean‐Charles Rochet & Jean Tirole, 2006.
"Two‐sided markets: a progress report,"
RAND Journal of Economics,
RAND Corporation, vol. 37(3), pages 645-667, 09.
- Varian, Hal R., 2007. "Position auctions," International Journal of Industrial Organization, Elsevier, vol. 25(6), pages 1163-1178, December.
- Anindya Ghose & Sha Yang, 2007. "An Empirical Analysis of Search Engine Advertising: Sponsored Search and Cross-Selling in Electronic Markets," Working Papers 07-35, NET Institute, revised Sep 2007.
- Shaked, Avner & Sutton, John, 1983. "Natural Oligopolies," Econometrica, Econometric Society, vol. 51(5), pages 1469-83, September.
- Benjamin Edelman & Michael Ostrovsky & Michael Schwarz, 2005.
"Internet Advertising and the Generalized Second Price Auction: Selling Billions of Dollars Worth of Keywords,"
NBER Working Papers
11765, National Bureau of Economic Research, Inc.
- Benjamin Edelman & Michael Ostrovsky & Michael Schwarz, 2007. "Internet Advertising and the Generalized Second-Price Auction: Selling Billions of Dollars Worth of Keywords," American Economic Review, American Economic Association, vol. 97(1), pages 242-259, March.
- Mark Armstrong, 2006.
"Competition in two‐sided markets,"
RAND Journal of Economics,
RAND Corporation, vol. 37(3), pages 668-691, 09.
- Pollock, R., 2007.
"The Control of Porting in Two-Sided Markets,"
Cambridge Working Papers in Economics
0754, Faculty of Economics, University of Cambridge.
- Rochet, Jean-Charles & Tirole, Jean, 2003.
"Platform Competition in Two-Sided Markets,"
IDEI Working Papers
152, Institut d'Économie Industrielle (IDEI), Toulouse.
- repec:rje:randje:v:37:y:2006:3:p:668-691 is not listed on IDEAS
- Harris, Christopher & Vickers, John, 1985. "Perfect Equilibrium in a Model of a Race," Review of Economic Studies, Wiley Blackwell, vol. 52(2), pages 193-209, April.
- Haucap, Justus & Heimeshoff, Ulrich, 2013. "Google, Facebook, Amazon, eBay: Is the internet driving competition or market monopolization?," DICE Discussion Papers 83, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Howard Cobb).
If references are entirely missing, you can add them using this form.