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SUMMARY:Sources of Market Power in Web Search: Evidence from a Field Exper
 iment
DTSTART;TZID=Europe/London:20260515T160000
DTEND;TZID=Europe/London:20260515T170000
DTSTAMP:20260515T141946Z
UID:be96d98d-6219-f111-8342-7c1e522d9057
CREATED:20260306T135929Z
DESCRIPTION:We study the forces behind Google’s large web-search market 
 share. We develop a demand model with switching costs\, quality beliefs\, 
 and inattention\, and estimate it using a field experiment. We find that (
 i) requiring active choice barely increases Bing’s market share\; (ii) G
 oogle users paid to try Bing update positively about its quality and many 
 prefer to continue using it\; (iii) many Google users defaulted into Bing 
 do not switch back\, consistent with inattention. Counterfactuals suggest 
 that eliminating de mand frictions doubles Bing’s market share. Successf
 ul remedies expose users to alternative search engines\, while data sharin
 g mandates have small effects.
LAST-MODIFIED:20260427T124120Z
LOCATION:Manor Road Building - Skills Lab\, Skills Lab Manor Road Building
  Manor Road Oxford Oxfordshire OX1 3UQ United Kingdom
SPEAKER:Tobias Salz
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