This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

The Nature of Markets in the World Wide Web

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Bernardo A. Huberman () (Xerox PARC)
Lada A. Adamic () (Xerox PARC)
Abstract

Much has been said about the possibility that in the information age, ease of entry and global access will lead to market characteristics with few inefficiencies. While several arguments have been articulated on the nature of markets and electronic commerce, little is known about their characteristics and performance. We have studied the statistics in the number of visitors to sites of the World Wide Web by examining AOL usage logs covering 120,000 sites. We found out that, among all sites as well as for specific categories, the distribution of visitors per site follows a universal power law similar to that found by Pareto for income distributions. This implies that a small number of sites commands the traffic of a large segment of the Web population, a phenomenon reminiscent of winner-take-all markets. We have also developed a dynamic theory of site popularity that takes into account the stochastic nature of user decisions to visit given sites as well as the fact that newer sites are appearing at an ever increasing rate. The model accounts for the observed power law behavior and naturally provides the amplification factor responsible for the increased performance of the top performers.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. 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.

File URL: ftp://parcftp.xerox.com/pub/dynamics/webmarkets.ps.gz
Our checks indicate that this address may not be valid because: 500 Failed to connect to FTP server parcftp.xerox.com: Net::FTP: connect: timeout. If this is indeed the case, please notify (Christopher F. Baum)
File Format: application/x-gzip
File Function: main text
Download Restriction: no

Publisher Info
Paper provided by Society for Computational Economics in its series Computing in Economics and Finance 1999 with number 521.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length:
Date of creation: 01 Mar 1999
Date of revision:
Handle: RePEc:sce:scecf9:521

Contact details of provider:
Postal: CEF99, Boston College, Department of Economics, Chestnut Hill MA 02467 USA
Fax: +1-617-552-2308
Web page: http://fmwww.bc.edu/CEF99/
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).

Related research
Keywords:

This paper has been announced in the following NEP Reports:

Cited by:
(explanations, 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.)
  1. Alex Coad, 2009. "On the distribution of product price and quality," Journal of Evolutionary Economics, Springer, vol. 19(4), pages 589-604, August. [Downloadable!] (restricted)
Statistics
Access and download statistics

Did you know? You can create a compilation of all publications of a group of people, say alumni of a program, your students or memers of an association.

This page was last updated on 2009-11-13.


This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.