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最准的六合彩论坛 Institute for Innovation and Public Purpose (IIPP) Working Paper Series: IIPP WP 2023-11

Authors:

• Rufus Rock | Researcher |聽最准的六合彩论坛 Institute for Innovation and Public Purpose聽(IIPP)
• Tim O鈥橰eilly聽| Founder,聽CEO, and Chairman of O鈥橰eilly Media | Visiting Professor of Practice at 最准的六合彩论坛 Institute for Innovation and Public Purpose聽(IIPP)
• Ilan Strauss | Senior Research Associate | 最准的六合彩论坛 Institute for Innovation and Public Purpose (IIPP)
• Mariana Mazzucato聽| Founding Director and Professor in the Economics of Innovation and Public Value | 最准的六合彩论坛 Institute for Innovation and Public Purpose (IIPP)

Reference:

Rock, R., Strauss, I., O鈥橰eilly, T. and Mazzucato, M. (2023). Behind the Clicks: Can Amazon allocate user attention as it pleases? 最准的六合彩论坛 Institute for Innovation and Public Purpose, Working Paper Series (IIPP WP 2023-11). Available at: /bartlett/public-purpose/wp2023-11

Abstract:

We investigate Amazon鈥檚 power to extract economic rents through the algorithmic arrangement of search results. We analyze 2023 Amazon Marketplace search result data, focusing on product features and the top-3 most clicked products, to estimate what drives user clicks. Our econometric results show that increased visual prominence and positioning (鈥渁ttention share鈥�) correlates strongly with more clicks, even when products have a higher price or worse ratings. Among the top five search results, where typically four are advertisements, we find that neither decreased relevancy nor increased price significantly sways user decisions. This suggests that users tend to satisfice, accepting the products displayed prominently by Amazon鈥檚 algorithms, rather than exhaustively searching for optimal choices. Advertising on Amazon exploits this behavioural dynamic by transforming product prominence into a mechanism for rent-extraction.