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Bias and Size Effects of Price-Comparison Search Engines: Theory and Experimental Evidence

Aurora García-Gallego (), Nikolaos Georgantzís (), Pedro Pereira and José C. Pernías-Cerrillo ()
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José C. Pernías-Cerrillo: Universitat Jaume I

No 20, Working Papers from Portuguese Competition Authority

Abstract: This article, analyzes the impact on consumer prices of the size and bias of price comparison search engines. we develop a model, related to Burdett and Judd (1983) and Varian (1980), and test experimentally several theoretical predictions. The experimental results confirm the model’s predictions regarding the impact of the number of firms, and the type of bias of the search engine, but reject the model’s predictions regarding changes in the size of the index.

Keywords: Search engines; incomplete information; biased information; price levels; experiments. (search for similar items in EconPapers)
JEL-codes: C91 D43 D83 L13 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-exp and nep-ict
Date: 2007-02
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http://www.concorrencia.pt/download/WP20_SearchEngines_Jan07.pdf First version, 2007 (application/pdf)
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