Choice Architectures on Search Engine Platforms: An Analysis of the Effects of Infinite Scrolling on Firms and Competition

• Applicant: Professor Dr. Jens Förderer
• Subject Area: Operations Management and Computer Science for Business Administration
• Term: since 2024
• Project identifier: Deutsche Forschungsgemeinschaft (DFG) - Project number 535698238

A crucial question for research, firms, and politics is how the design of search engine platforms influences interactions between firms and customers, known as choice architecture. Previous research has shown in various contexts that even minor changes in the choice architecture can significantly alter user behavior. The aim of this research project is to investigate the effects of one of the most prevalent choice architectures on search engine platforms for firms, namely "Infinite Scroll." Infinite Scroll refers to the continuous vertical expansion of search results instead of page-by-page (horizontal) results. Lab experiments have observed that users behave differently under an Infinite Scroll navigation, particularly in terms of increased usage time and fundamental changes in interaction. Despite the widespread use of Infinite Scroll, its effects on businesses and the market are not well understood. To understand these effects, this research project conducts a quasi-experimental study on the Google search engine platform. The research design follows a difference-in-differences estimation, utilizing the country-specific introduction of Infinite Scroll to create experimental and control groups. Hypotheses regarding the impact of Infinite Scroll on website operators' traffic, search volume, website quality, and advertising costs are tested. Massive and new data from the leading search engine analytics provider, Semrush, serve as the data foundation. This research project will make it possible to understand the impact of Infinite Scroll on firms and the market - thus complementing research that has so far focused on user behavior. The results will expand the scientific understanding of choice architectures on digital platforms with respect to one of the most widely used choice architectures. Through the results, the economic impact of infinite scrolling can be estimated, as it enables the identification of reliable, causal estimates. The project holds significant societal relevance, because choice architectures are of great interest to lawmakers and regulatory authorities, especially regarding competitiveness and consumer protection. The findings will permit the evidence-based regulation of search engine platforms.

• DFG Programme: Research Grants