Neil Gandal

The dynamics of competition in the internet search engine market
Keywords: Internet; Search engines; Entry; Empirical study
JEL classification: D43; L86

Abstract: Search engines hold the key to helping consumers access to 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 (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.