Abstract
PurposeInternet search is a $120bn business that answers lists of search terms or keywords with relevant links to Internet webpages. Only a few companies have sufficient scale to compete and thus economics of the process are paramount. This study aims to develop a detailed industry-specific modeling of the economics of internet search.Design/methodology/approachThe current research develops a stochastic model of the process of Internet indexing, search and retrieval in order to predict expected costs and revenues of particular configurations and usages.FindingsThe models define behavior and economics of parameters that are not directly observable, where it is difficult to empirically determine the distributions and economics.Originality/valueThe model may be used to guide the economics of large search engine operations, including the advertising platforms that depend on them and largely fund them.
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