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The Dynamics of Competition in the Internet Search Engine Market

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  • Gandal, N.

Abstract

Search engines hold the key to helping consumers access the wealth of information on the web. In this paper, I examine the evolution of and competition in the internet search engine market. I find that while early entrants (Yahoo, Lycos, Excite, Infoseek, and Altavista) still have an advantage, this advantage has been declining significantly over time. The success of a wave of recent new entrants suggests that entry barriers are sill quite low in the internet search engine market.

Suggested Citation

  • Gandal, N., 2000. "The Dynamics of Competition in the Internet Search Engine Market," Papers 1-2000, Tel Aviv.
    • Handle: RePEc:fth:teavfo:1-2000
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    Cited by:

    1. Iwanicki Grzegorz & Dłużewska Anna & Kay Melanie Smith, 2016. "Assessing the Level of Popularity of European Stag Tourism Destinations," Quaestiones Geographicae, Sciendo, vol. 35(3), pages 15-29, September.
    2. Pavan, Giulia & Pozzi, Andrea & Rovigatti, Gabriele, 2020. "Strategic entry and potential competition: Evidence from compressed gas fuel retail," International Journal of Industrial Organization, Elsevier, vol. 69(C).
    3. Haynes, Michelle & Thompson, Steve, 2008. "Price, price dispersion and number of sellers at a low entry cost shopbot," International Journal of Industrial Organization, Elsevier, vol. 26(2), pages 459-472, March.
    4. Avi Goldfarb, 2006. "The medium-term effects of unavailability," Quantitative Marketing and Economics (QME), Springer, vol. 4(2), pages 143-171, June.
    5. Wang, Yuanshi & Wu, Hong, 2006. "Dynamics of a macroscopic model characterizing mutualism of search engines and web sites," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 363(2), pages 537-550.
    6. Pollock, Rufus, 2008. "Is Google the next Microsoft? Competition, Welfare and Regulation in Internet Search," MPRA Paper 8885, University Library of Munich, Germany.
    7. Allen N. Berger & Astrid A. Dick, 2007. "Entry into Banking Markets and the Early‐Mover Advantage," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 39(4), pages 775-807, June.
    8. Tarantino, Emanuele, 2013. "A simple model of vertical search engines foreclosure," Telecommunications Policy, Elsevier, vol. 37(1), pages 1-12.
    9. Andrea Fosfuri & Marco S. Giarratana & Alessandra Luzzi, 2005. "Firm Assets and Investments in Open Source Software Products," DRUID Working Papers 05-10, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    10. Fosfuri, Andrea & Giarratana, Marco S., 2004. "Product strategies and startups' survival in turbulent industries: evidence from the security software industry," DEE - Working Papers. Business Economics. WB wb044816, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
    11. Dan Elfenbein & Josh Lerner, 2001. "Links and Hyperlinks: An Empirical Analysis of Internet Portal Alliances, 1995-1999," NBER Working Papers 8251, National Bureau of Economic Research, Inc.
    12. Pan, Bing, 2015. "The power of search engine ranking for tourist destinations," Tourism Management, Elsevier, vol. 47(C), pages 79-87.
    13. Thomas A. Weber & Zhiqiang (Eric) Zheng, 2007. "A Model of Search Intermediaries and Paid Referrals," Information Systems Research, INFORMS, vol. 18(4), pages 414-436, December.

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    More about this item

    Keywords

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    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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