Working Paper: NBER ID: w30894
Authors: 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% to 60% of the prominence granted to sponsored products.
Keywords: self-preferencing; Amazon; search rankings; digital platforms; consumer behavior
JEL Codes: D12; D83; L13; L15; L81
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Amazon branded products (L68) | higher search ranking (A14) |
| Amazon branded products (L68) | visibility of its brands (M37) |
| higher search ranking (A14) | consumer choices (D10) |