Self-Preferencing and Search Neutrality in Online Retail Platforms

• 成果类型: Article
• 署名作者: Zou, Tianxin; Zhou, Bo
• 署名单位: State University System of Florida; University of Florida; University System of Maryland; University of Maryland College Park
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2022.01795
• 发表日期: 2025
• 关键词: platform self-preferencing; platform bias; search neutrality; platform regulation; ANTITRUST; search ranking; Market entry

摘要

Recent regulations on search neutrality prohibit retail platforms from selfpreferentially prioritizing their first-party products over those of third-party sellers in consumers' search rankings. This paper shows that, despite its good intention, search neutrality may unintendedly harm consumers and third-party sellers because of the strategic decisions of the platform and third-party sellers. In the short term, search neutrality can weaken the price competition between the platform and third-party sellers, which will hurt consumers if many of them ex ante prefer the third-party product, and can increase the platform's profit if many consumers ex ante prefer the first-party product. In the long term, search neutrality can incentivize the platform to preempt the entry of third-party sellers if their entry cost is intermediate, further harming consumers and third-party sellers. Both unintended harms stem from two unique features of online retailing platforms: platforms personalize consumers' search rankings, and consumers observe product prices before searching a product in depth. Alternative formulations of search neutrality, consumers' search costs, and their product match likelihoods are considered to demonstrate the robustness of the main results.