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Integration and search engine bias

Author

Listed:
  • Alexandre de Cornière

    (University of Oxford)

  • Greg Taylor

    (University of Oxford)

Abstract

We study the effects of integration between a search engine and a publisher. In a model in which the search engine (i) allocates users across publishers and (ii) competes with publishers to attract advertisers, we find that the search engine is biased against publishers that display many ads – even without integration. Integration can (but need not) lead to own-content bias. It can also benefit consumers by reducing the nuisance costs due to excessive advertising. Advertisers are more likely to suffer from integration than consumers. On net, the welfare effects of integration are ambiguous.

Suggested Citation

  • Alexandre de Cornière & Greg Taylor, 2014. "Integration and search engine bias," Post-Print halshs-01510254, HAL.
    • Handle: RePEc:hal:journl:halshs-01510254
    as

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    Keywords

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    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L4 - Industrial Organization - - Antitrust Issues and Policies
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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