Cristina Caffarra, Oliver Latham, Matthew Bennett, Federico Etro, Pierre Régibeau, Robert Stillman, 27 July 2018

The European Commission’s decision to fine Google €4.34 billion for abuse of market power has been accused of being politically motivated and of risking higher prices for consumers. This column argues that the Commission’s decision has economic merit and falls within established legal precedent. As mobile search is the key gateway to access information, we should be concerned about dominance in this market for its potential distortionary effects on innovation and consumer outcomes across multiple other markets.

Lorenzo Coviello, Uri Gneezy, Lorenz Götte, 18 February 2018

Measuring the returns to search engine marketing accurately is difficult, but one study suggested that if eBay were to suspend its branded search ads, the volume of traffic to the site would remain virtually unchanged. Based on a field test involving a website for automotive information in the US, this column argues that money spent on search engine marketing by smaller brands may be more effective than previously documented. Only about half of the traffic normally flowing through branded search ads still flowed to the site when it relied only on organic search links.

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