The Effect of Links and Excerpts on Internet News Consumption

54 Pages Posted: 25 Oct 2015

See all articles by Jason M.T. Roos

Jason M.T. Roos

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM); Erasmus Research Institute of Management (ERIM)

Carl F. Mela

Duke University - Fuqua School of Business

Ron Shachar

Interdisciplinary Center (IDC) Herzliyah - Adelson School of Entrepreneuship

Date Written: September 24, 2015

Abstract

Does an Internet news site that excerpts and links to its competition steal their traffic? Or does excerpting increase the linked sites' audience? We develop a structural model to address this question. We show theoretically that the excerpted sites may either benefit (because consumers learn the linked content is suited to their preferences) or be harmed (because excerpting makes the linking site so attractive it steals traffic from the sites it links to). Using data from celebrity news sites, we measure the impact of excerpting on consumers' browsing choices, and find the former effect is dominant — that links are beneficial to both the linking and linked sites, as well as consumers.

Keywords: Structural models, Learning models, Dynamic programming, Bayesian estimation

JEL Classification: M31, D83, L82

Suggested Citation

Roos, Jason M.T. and Mela, Carl F. and Shachar, Roni, The Effect of Links and Excerpts on Internet News Consumption (September 24, 2015). Available at SSRN: https://ssrn.com/abstract=2678938 or http://dx.doi.org/10.2139/ssrn.2678938

Jason M.T. Roos (Contact Author)

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM) ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands
+31 (0)10 408 25 27 (Phone)

HOME PAGE: http://www.jasonmtroos.com

Erasmus Research Institute of Management (ERIM)

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Carl F. Mela

Duke University - Fuqua School of Business ( email )

Box 90120
Durham, NC 27708-0120
United States
919-660-7767 (Phone)

Roni Shachar

Interdisciplinary Center (IDC) Herzliyah - Adelson School of Entrepreneuship ( email )

P.O. Box 167
Herzliya, 46150
Israel

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