Self-Preferencing at Amazon: Evidence from Search Rankings
AbstractWe 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.
CitationFarronato, Chiara, Andrey Fradkin, and Alexander MacKay. 2023. "Self-Preferencing at Amazon: Evidence from Search Rankings." AEA Papers and Proceedings, 113: 239-43. DOI: 10.1257/pandp.20231068
- D12 Consumer Economics: Empirical Analysis
- D83 Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
- D91 Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
- L81 Retail and Wholesale Trade; e-Commerce
- M31 Marketing