Competitive dynamics of web sites

Sebastian M. Maurer and Bernardo A. Huberman

Journal of Economic Dynamics and Control, 2003, vol. 27, issue 11, 2195-2206

Abstract: We present a dynamical model of web site growth in order to explore the effects of competition among web sites and to determine how they affect the nature of markets. We show that under general conditions, as the competition between sites increases, the model exhibits a sudden transition from a regime in which many sites thrive simultaneously, to a “winner-take-all market” in which a few sites grab almost all the users, while most other sites go nearly extinct. This is in agreement with recent measurements on the nature of electronic markets.

Keywords: Winner-take-all; Competition; Dynamics; Equilibrium (search for similar items in EconPapers)
JEL-codes: D59 L11 (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:dyncon:v:27:y:2003:i:11:p:2195-2206

DOI: 10.1016/S0165-1889(02)00121-5

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