More Competitive Search Through Regulation

Abstract

This paper identifies a set of possible regulations that could be used both to make the search market more competitive and simultaneously ameliorate the harms flowing from Google’s current monopoly position. The purpose of this paper is to identify conceptual problems and solutions based on sound economic principles and to begin a discussion from which robust and specific policy recommendations can be drafted. Consumers are harmed when a single, for-profit firm acts as the solitary gatekeeper between billions of end users and those with whom they would transact. These harms become even larger when innovative new technologies such as the internet of things may be captured by the incumbent monopolist. Economic theory can help us develop and apply regulations that lower entry barriers and encourage competition in this important market.