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Modeling the Internet Search Market: A Step in Bringing the User into the Picture |
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PP: 291-296 |
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Author(s) |
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Natalia Kudryashova,
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Abstract |
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| Success in the internet search market is ultimately determined by the preferences of users, who may switch between search
platforms, which are just a click away. Users’ switching reflects changes in the perceived value of competing offerings due to strategic
decisions of market players, and, in turn, significantly modifies intended effects of these decisions on the market. We propose to place
the strategic optimisation in the market in question into a framework providing ”switching feedback” of ”learning users”. However,
it has to be remembered that users’ preferences are not necessarily entirely rational. Despite the absence of switching costs, there
are different factors, such as habitual attraction, that affect user dynamics. We demonstrate the importance of accounting for habitual
attraction in understanding the market dynamics and discuss applications of the proposed approach in economics and law. |
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