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Competition and Defaults in Online Search

Author

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  • Francesco Decarolis
  • Muxin Li
  • Filippo Paternollo

Abstract

This paper offers the first systematic quantitative assessment of default-option interventions designed to mitigate Google's search dominance. By analyzing interventions in the European Economic Area (EEA), Russia, and Turkey, we find that across all three cases, changes to default settings effectively reduced Google's market share. The causal impact amounts to less than 1 percentage point in the EEA and over 10 percentage points in Russia and Turkey. Differences arise from intervention nuances, including the size of the targeted users' group, local market characteristics, and remedy designs. We discuss the complexity of assessing the interventions' impact on welfare deriving from quality responses.

Suggested Citation

  • Francesco Decarolis & Muxin Li & Filippo Paternollo, 2025. "Competition and Defaults in Online Search," American Economic Journal: Microeconomics, American Economic Association, vol. 17(3), pages 369-414, August.
    • Handle: RePEc:aea:aejmic:v:17:y:2025:i:3:p:369-414
    DOI: 10.1257/mic.20230193
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    More about this item

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • P31 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions

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