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Bias and Size Effects of Price-Comparison Search Engines: Theory and Experimental Evidence

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Author Info

  • Aurora García-Gallego

    ()
    (Universitat Jaume I)

  • Nikolaos Georgantzís

    ()
    (Universitat Jaume I)

  • Pedro Pereira

    ()
    (Autoridade da Concorrência)

  • José C. Pernías-Cerrillo

    ()
    (Universitat Jaume I)

Abstract

This 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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File Function: First version, 2007
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Bibliographic Info

Paper provided by Portuguese Competition Authority in its series Working Papers with number 20.

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Length: 23 pages
Date of creation: Feb 2007
Date of revision:
Handle: RePEc:pca:wpaper:20

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Related research

Keywords: Search engines; incomplete information; biased information; price levels; experiments.;

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