The dynamics of competition in the internet search engine market

Neil Gandal*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

Search engines hold the key to helping consumers access the wealth of information on the web. In this paper I examine the evolution of and competition in the internet search engine market. The goal of my analysis is to examine whether early entrants benefit in the long run from their first-mover position in internet markets. I find that while early entrants (Yahoo, Lycos, Excite, Infoseek, and Altavista) still have an advantage, the pure "brand effect" advantage has been declining over time. Yahoo has maintained its leadership position by providing a superior product. The success of a wave of recent new entrants suggests that entry barriers are still quite low in the internet search engine market.

Original languageEnglish
Pages (from-to)1103-1117
Number of pages15
JournalInternational Journal of Industrial Organization
Volume19
Issue number7
DOIs
StatePublished - Jul 2001

Keywords

  • D43
  • Empirical study
  • Entry
  • Internet
  • L86
  • Search engines

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