The Power Dynamics of Search Engines on the Web

Title: The Power Dynamics of Search Engines on the Web

Main Research Question: How monopolistic are search engines in the web market, and what factors contribute to their power dynamics?

Methodology: The study used a network and economic perspective to analyze the search engine market. It focused on major search engines that provide general search services and assumed that the top 19 search engines in a June 2000 rating from Nielsen/NetRatings accounted for 100% market share. The researchers collected data on the hyperlinks connecting these search engine websites over a five-month period from August 2000 to December 2000. Each month's network was stored as a binary matrix.

Results: The analysis revealed an increasing degree of centrality in the industry, indicating an unequal distribution of power among search engines. The researchers also applied three additional concepts: concentration, product differentiation, and entry barriers to describe the market structure of the search engines. They found that barriers to entry were high due to the exponential growth in the number of web sites and the non-scalability of current search technology, and that older search engine sites tended to have more features to lock in users.

Implications: The study suggests that there is a risk of information distortion, loss of social welfare, and loss of economic value for sites not covered by search engines. If the number of search engines decreases and continues to increase faster than the number of sites searched, these issues may become more prevalent. The researchers propose conducting further research into the coverage performance of search engines and investigating "information search cost" as a performance indicator of search techniques. They also suggest paying attention to any anticompetitive conduct that may lessen competition and reduce consumer welfare.

In conclusion, the study provides valuable insights into the power dynamics of search engines in the web market and highlights the importance of maintaining competition and consumer welfare in this rapidly evolving industry.

Link to Article: https://arxiv.org/abs/0109054v1 Authors: arXiv ID: 0109054v1