Integration and Search Engine Bias

41 Pages Posted: 19 Dec 2012 Last revised: 13 Aug 2013

See all articles by Alexandre de Corniere

Alexandre de Corniere

Toulouse School of Economics

Greg Taylor

University of Oxford - Oxford Internet Institute

Date Written: August 5, 2013

Abstract

Competition authorities all over the world worry that integration between search engines (mainly Google) and publishers could lead to abuses of dominant position. In particular, one concern is that of own-content bias, meaning that Google would bias its rankings in favor of the publishers it owns or has an interest in, to the detriment of competitors and users. In order to investigate this issue, we develop a theoretical framework in which the search engine (i) allocates users across publishers, and (ii) competes with publishers to attract advertisers. We show that the search engine is biased against publishers that display many ads -- even without integration. Although integration may lead to own-content bias, it can also reduce bias by increasing the value of a marginal consumer to the search engine. Integration also has a positive effect on users by reducing the nuisance costs due to excessive advertising. Its net effect is therefore ambiguous in general, and we provide sufficient conditions for it to be desirable or not.

Keywords: search engine, integration, advertising

JEL Classification: L1, L4, L86

Suggested Citation

de Corniere, Alexandre and Taylor, Greg, Integration and Search Engine Bias (August 5, 2013). Available at SSRN: https://ssrn.com/abstract=2190953 or http://dx.doi.org/10.2139/ssrn.2190953

Alexandre De Corniere (Contact Author)

Toulouse School of Economics ( email )

Place Anatole-France
Toulouse Cedex, F-31042
France

Greg Taylor

University of Oxford - Oxford Internet Institute ( email )

1 St. Giles
University of Oxford
Oxford OX1 3PG Oxfordshire, Oxfordshire OX1 3JS
United Kingdom

HOME PAGE: http://www.greg-taylor.co.uk

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