The Nature of Markets in the World Wide Web

IEA5

10 Pages Posted: 30 Mar 2000

See all articles by Lada Adamic

Lada Adamic

University of Michigan at Ann Arbor; Xerox Corp. - Palo Alto Research Center

Bernardo A. Huberman

CableLabs

Date Written: May 6, 1999

Abstract

We studied the statistics in the number of visitors to sites of the World Wide Web by examining usage logs covering one hundred and twenty thousand sites. We found out that both in the case of all sites and sites in specific categories, the distribution of visitors per site follows a universal power law, characteristic of winner-take-all markets. We developed a dynamical theory of site popularity which 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.

JEL Classification: D40

Suggested Citation

Adamic, Lada and Huberman, Bernardo A., The Nature of Markets in the World Wide Web (May 6, 1999). IEA5, Available at SSRN: https://ssrn.com/abstract=166108 or http://dx.doi.org/10.2139/ssrn.166108

Lada Adamic

University of Michigan at Ann Arbor ( email )

500 S. State Street
Ann Arbor, MI 48109
United States
+1 (734) 615 2132 (Phone)

HOME PAGE: http://www-personal.umich.edu/~ladamic

Xerox Corp. - Palo Alto Research Center ( email )

3333 Coyote Hill Road
Palo Alto, CA 94304-1314
United States
650-812-4147 (Phone)

Bernardo A. Huberman (Contact Author)

CableLabs ( email )

400 W California Ave
Sunnyvale, CA 94086
United States

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