Influence of Search Neutrality on the Economics of Advertisement-Financed Content

The search neutrality debate questions the ranking methods of search engines. We analyze the issue when content providers offer content for free, but get revenues from advertising. We investigate the noncooperative game among competing content providers under different ranking policies. When the search engine is not involved with high-quality content providers, it should adopt neutral ranking, also maximizing user quality-of-experience. If the search engine controls high-quality content, favoring its ranking and adding advertisement yield a larger revenue. Though user perceived quality may not be impaired, the advertising revenues of the other content providers drastically decrease.