Bias and Size Effects of Price-Comparison Search Engines: Theory and Experimental Evidence
AbstractThis article, analyzes the impact on consumer prices of the size and bias of price comparison search engines. we develop a model, related to Burdett and Judd (1983) and Varian (1980), and test experimentally several theoretical predictions. The experimental results confirm the model’s predictions regarding the impact of the number of firms, and the type of bias of the search engine, but reject the model’s predictions regarding changes in the size of the index.
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Bibliographic InfoPaper provided by Portuguese Competition Authority in its series Working Papers with number 20.
Length: 23 pages
Date of creation: Feb 2007
Date of revision:
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Search engines; incomplete information; biased information; price levels; experiments.;
Find related papers by JEL classification:
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-05-12 (All new papers)
- NEP-EXP-2007-05-12 (Experimental Economics)
- NEP-ICT-2007-05-12 (Information & Communication Technologies)
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