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Self-Preferencing at Amazon: Evidence from Search Rankings

Author

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  • Chiara Farronato
  • Andrey Fradkin
  • Alexander MacKay

Abstract

We study whether Amazon engages in self-preferencing on its marketplace by favoring its own brands (e.g., Amazon Basics) in search. To address this question, we collect new micro-level consumer search data using a custom browser extension installed by a panel of study participants. Using this methodology, we observe search positions, search behavior, and product characteristics. We find that Amazon-branded products are indeed ranked higher than observably similar products in consumer search results. The prominence given to Amazon brands is 30 percent to 60 percent of the prominence granted to sponsored products.

Suggested Citation

  • Chiara Farronato & Andrey Fradkin & Alexander MacKay, 2023. "Self-Preferencing at Amazon: Evidence from Search Rankings," AEA Papers and Proceedings, American Economic Association, vol. 113, pages 239-243, May.
    • Handle: RePEc:aea:apandp:v:113:y:2023:p:239-43
    DOI: 10.1257/pandp.20231068
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    Cited by:

    1. Honka, Elisabeth & Seiler, Stephan & Ursu, Raluca, 2024. "Consumer search: What can we learn from pre-purchase data?," Journal of Retailing, Elsevier, vol. 100(1), pages 114-129.
    2. Federico Etro, 2024. "e‐Commerce platforms and self‐preferencing," Journal of Economic Surveys, Wiley Blackwell, vol. 38(4), pages 1516-1543, September.
    3. Jack (Peiyao) Ma & Andrea Mantovani & Carlo Reggiani & Annette Broocks & Néstor Duch-Brown, 2024. "The Price Effects of Prohibiting Price Parity Clauses: Evidence from International Hotel Groups," Economics Series Working Papers 1043, University of Oxford, Department of Economics.

    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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