Do consumers benefit from concentration in the New Economy? : a review of Google's mergers, acquisitions, and arrangements


Beschorner, Patrick


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URL: https://ub-madoc.bib.uni-mannheim.de/2235
URN: urn:nbn:de:bsz:180-madoc-22355
Document Type: Working paper
Year of publication: 2008
The title of a journal, publication series: None
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: L42 K21 L41 M37 ,
Subject headings (SWD): USA , Suchmaschine , Online-Werbung , Konzentration <Wirtschaft> , New Economy , Google Inc.
Keywords (English): merger control , multisided platforms , screening mechanism
Abstract: Within the last three years, Google has acquired YouTube and DoubleClick and has attempted to control part of Yahoo!'s search advertising business. Two of the deals have not raised antitrust concerns by competition authorities. I review these deals with a focus on consumer welfare. Consumers are affected by being on one side of a multisided platform. Provided that better matches of search ads are beneficial, I demonstrate that the mergers may have positive effects for consumers through better matches between users and search ads. However, this does not substitute an in-depth antitrust assessment of the deals.
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