Comments on: Talk at RES Annual Conference on “Is Google the Next Microsoft? Competition, Welfare and Regulation in Internet Search” http://rufuspollock.org/2009/04/27/talk-at-res-annual-conference-on-is-google-the-next-microsoft-competition-welfare-and-regulation-in-internet-search/ Wed, 18 Jan 2012 14:17:51 +0000 hourly 1 http://wordpress.org/?v=3.1.4 By: thedailydish http://rufuspollock.org/2009/04/27/talk-at-res-annual-conference-on-is-google-the-next-microsoft-competition-welfare-and-regulation-in-internet-search/comment-page-1/#comment-161851 thedailydish Sat, 09 Jan 2010 23:38:15 +0000 http://www.rufuspollock.org/2009/04/27/talk-at-res-annual-conference-on-is-google-the-next-microsoft-competition-welfare-and-regulation-in-internet-search/#comment-161851 <p>Forget it! - sorry - just search for Google at the onion site. The video is hysterical. Google allows users to 'opt out' by moving to a remote village.</p> Forget it! – sorry – just search for Google at the onion site. The video is hysterical. Google allows users to ‘opt out’ by moving to a remote village.

]]> By: thedailydish http://rufuspollock.org/2009/04/27/talk-at-res-annual-conference-on-is-google-the-next-microsoft-competition-welfare-and-regulation-in-internet-search/comment-page-1/#comment-161849 thedailydish Sat, 09 Jan 2010 23:33:51 +0000 http://www.rufuspollock.org/2009/04/27/talk-at-res-annual-conference-on-is-google-the-next-microsoft-competition-welfare-and-regulation-in-internet-search/#comment-161849 <p>You might enjoy this:</p> <p>http://www.theonion.com/content/video/google<em>opt</em>out<em>feature</em>lets_users</p> You might enjoy this:

http://www.theonion.com/content/video/googleoptoutfeaturelets_users

]]> By: rgrp http://rufuspollock.org/2009/04/27/talk-at-res-annual-conference-on-is-google-the-next-microsoft-competition-welfare-and-regulation-in-internet-search/comment-page-1/#comment-160052 rgrp Mon, 11 May 2009 16:06:11 +0000 http://www.rufuspollock.org/2009/04/27/talk-at-res-annual-conference-on-is-google-the-next-microsoft-competition-welfare-and-regulation-in-internet-search/#comment-160052 <p>You would regulate the 'algorithm', or more indirectly, the results of that algorithm: site rankings.</p> <p>I should also reiterate here a point made in greater detail in the paper, namely that it is always more attractive to foster competition than to restrain monopoly. As such we should focused on ways to ensure that search remains reasonably competitive rather than seeking ways, almost certainly inadequate, to deal with a market which is already monopolized.</p> <p>In pursuit of this, it is crucial to draw a distinction between the 'software' (algorithm) and the 'service' (servers) side of the search business. Both are crucial in running a search engine but they differ in important technological and economic aspects. In particular, the 'service' side is marked by substantial economies of scale, the 'software' side is marked by cumulative innovation.</p> <p>Both of these factors can generate dominance and lock-in but I would argue that, in the long term, it is lock-in on the 'software' side that we should be most concerned about (though, in the short-term economies of scale on the service side may be the biggest barriers to entry).</p> <p>The cost of entry on the software (algorithm) side would be fairly low if it were not that an active <em>service</em> is now a prerequisite for development. Without this barrier, a reasonable degree of competition in 'software' could be guaranteed in the medium term.</p> <p>Thus, my strongest suggestion to policy-makers at the present time is to look for ways to decouple the 'software' side from the 'service' side, perhaps by coordinating some form of shared service side infrastructure (a government sponsored search 'cloud' if you will.)</p> You would regulate the ‘algorithm’, or more indirectly, the results of that algorithm: site rankings.

I should also reiterate here a point made in greater detail in the paper, namely that it is always more attractive to foster competition than to restrain monopoly. As such we should focused on ways to ensure that search remains reasonably competitive rather than seeking ways, almost certainly inadequate, to deal with a market which is already monopolized.

In pursuit of this, it is crucial to draw a distinction between the ‘software’ (algorithm) and the ‘service’ (servers) side of the search business. Both are crucial in running a search engine but they differ in important technological and economic aspects. In particular, the ‘service’ side is marked by substantial economies of scale, the ‘software’ side is marked by cumulative innovation.

Both of these factors can generate dominance and lock-in but I would argue that, in the long term, it is lock-in on the ‘software’ side that we should be most concerned about (though, in the short-term economies of scale on the service side may be the biggest barriers to entry).

The cost of entry on the software (algorithm) side would be fairly low if it were not that an active service is now a prerequisite for development. Without this barrier, a reasonable degree of competition in ‘software’ could be guaranteed in the medium term.

Thus, my strongest suggestion to policy-makers at the present time is to look for ways to decouple the ‘software’ side from the ‘service’ side, perhaps by coordinating some form of shared service side infrastructure (a government sponsored search ‘cloud’ if you will.)

]]> By: rafa http://rufuspollock.org/2009/04/27/talk-at-res-annual-conference-on-is-google-the-next-microsoft-competition-welfare-and-regulation-in-internet-search/comment-page-1/#comment-159213 rafa Thu, 07 May 2009 16:51:15 +0000 http://www.rufuspollock.org/2009/04/27/talk-at-res-annual-conference-on-is-google-the-next-microsoft-competition-welfare-and-regulation-in-internet-search/#comment-159213 <p>but what exactly do you regulate? because I assume the problem for general welfare is not how much money google makes, but the potential limitations or interests in accessing information? and how do you regulate that?</p> but what exactly do you regulate? because I assume the problem for general welfare is not how much money google makes, but the potential limitations or interests in accessing information? and how do you regulate that?

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