Is Google the next Microsoft? Competition, Welfare and Regulation in Internet Search
Internet search (or perhaps more accurately `web-search') has grown exponentially over the last decade at an even more rapid rate than the Internet itself. Starting from nothing in the 1990s, today search is a multi-billion dollar business. Search engine providers such as Google and Yahoo! have become household names, and the use of a search engine, like use of the Web, is now a part of everyday life. The rapid growth of online search and its growing centrality to the ecology of the Internet raise a variety of questions for economists to answer. Why is the search engine market so concentrated and will it evolve towards monopoly? What are the implications of this concentration for different `participants' (consumers, search engines, advertisers)? Does the fact that search engines act as `information gatekeepers', determining, in effect, what can be found on the web, mean that search deserves particularly close attention from policy-makers? This paper supplies empirical and theoretical material with which to examine many of these questions. In particular, we (a) show that the already large levels of concentration are likely to continue (b) identify the consequences, negative and positive, of this outcome (c) discuss the possible regulatory interventions that policy-makers could utilize to address these.
|Date of creation:||May 2008|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC
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.:
- Jean-Charles Rochet & Jean Triole, 2002.
"Platform Competition in Two Sided Markets,"
FMG Discussion Papers
dp409, Financial Markets Group.
- Rochet, Jean-Charles & Tirole, Jean, 2003. "Platform Competition in Two-Sided Markets," IDEI Working Papers 152, Institut d'Économie Industrielle (IDEI), Toulouse.
- Jean-Charles Rochet & Jean Triole, 2002. "Platform competition in two sided markets," LSE Research Online Documents on Economics 24929, London School of Economics and Political Science, LSE Library.
- Yongmin Chen & Chuan He, 2006.
"Paid Placement: Advertising and Search on the Internet,"
06-02, NET Institute, revised Sep 2006.
- Yongmin Chen & Chuan He, 2011. "Paid Placement: Advertising and Search on the Internet," Economic Journal, Royal Economic Society, vol. 121(556), pages F309-F328, November.
- Gandal, Neil, 2001.
"The Dynamics of Competition in the Internet Search Engine Market,"
Department of Economics, Working Paper Series
qt0h17g08v, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Gandal, Neil, 2001. "The dynamics of competition in the internet search engine market," International Journal of Industrial Organization, Elsevier, vol. 19(7), pages 1103-1117, July.
- Gandal, Neil, 2000. "The Dynamics of Competition in the Internet Search Engine Market," Competition Policy Center, Working Paper Series qt8jk0904s, Competition Policy Center, Institute for Business and Economic Research, UC Berkeley.
- Neil Gandal, 2001. "The Dynamics of Competition in the Internet Search Engine Market," Microeconomics 0012003, EconWPA.
- Gandal, N., 2000. "The Dynamics of Competition in the Internet Search Engine Market," Papers 1-2000, Tel Aviv.
- Jean‐Charles Rochet & Jean Tirole, 2006.
"Two‐sided markets: a progress report,"
RAND Journal of Economics,
RAND Corporation, vol. 37(3), pages 645-667, 09.
- Benjamin Edelman & Michael Ostrovsky & Michael Schwarz, 2005.
"Internet Advertising and the Generalized Second Price Auction: Selling Billions of Dollars Worth of Keywords,"
NBER Working Papers
11765, National Bureau of Economic Research, Inc.
- Benjamin Edelman & Michael Ostrovsky & Michael Schwarz, 2007. "Internet Advertising and the Generalized Second-Price Auction: Selling Billions of Dollars Worth of Keywords," American Economic Review, American Economic Association, vol. 97(1), pages 242-259, March.
- Pollock, R., 2007.
"The Control of Porting in Two-Sided Markets,"
Cambridge Working Papers in Economics
0754, Faculty of Economics, University of Cambridge.
- Volker Nocke & Martin Peitz & Konrad Stahl, 2004.
PIER Working Paper Archive
04-029, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
- Nocke, Volker & Peitz, Martin & Stahl, Konrad, 2004. "Platform Ownership," CEPR Discussion Papers 4657, C.E.P.R. Discussion Papers.
- Nocke, Volker & Peitz, Martin & Stahl, Konrad, 2004. "Platform Ownership," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 16, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
- Glenn Ellison & Sara Fisher Ellison, 2004.
"Search, Obfuscation, and Price Elasticities on the Internet,"
NBER Working Papers
10570, National Bureau of Economic Research, Inc.
- Glenn Ellison & Sara Fisher Ellison, 2009. "Search, Obfuscation, and Price Elasticities on the Internet," Econometrica, Econometric Society, vol. 77(2), pages 427-452, 03.
- Mark Armstrong, 2005.
"Competition in Two-Sided Markets,"
- repec:rje:randje:v:37:y:2006:3:p:668-691 is not listed on IDEAS
- Susan Athey & Glenn Ellison, 2009.
"Position Auctions with Consumer Search,"
NBER Working Papers
15253, National Bureau of Economic Research, Inc.
- Harris, Christopher & Vickers, John, 1985. "Perfect Equilibrium in a Model of a Race," Review of Economic Studies, Wiley Blackwell, vol. 52(2), pages 193-209, April.
- Shaked, Avner & Sutton, John, 1983. "Natural Oligopolies," Econometrica, Econometric Society, vol. 51(5), pages 1469-83, September.
- Anindya Ghose & Sha Yang, 2007. "An Empirical Analysis of Search Engine Advertising: Sponsored Search and Cross-Selling in Electronic Markets," Working Papers 07-35, NET Institute, revised Sep 2007.
- Varian, Hal R., 2007. "Position auctions," International Journal of Industrial Organization, Elsevier, vol. 25(6), pages 1163-1178, December.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:8885. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.