03556oam 22005533a 450 991070814980332120230622022530.0(NBER)w20088(CKB)4920000000463783(OCoLC)979563497(EXLCZ)99492000000046378320230622d2014 fy 0engurcnu||||||||txtrdacontentcrdamediacrrdacarrierBanning Foreign Pharmacies from Sponsored SearchThe Online Consumer Response /Matthew Chesnes, Weijia (Daisy) Dai, Ginger Zhe JinCambridge, MassNational Bureau of Economic Research2014Washington, DC :Bureau of Economics, Federal Trade Commission,2014.1 online resourceillustrations (black and white);NBER working paper seriesno. w20088May 2014.Includes bibliographical references (pages 26-28).Increased competition from the internet has raised concerns about the quality of prescription drugs sold online. Given the pressure from the Department of Justice, Google agreed to ban pharmacies not certified by the National Association of Boards of Pharmacy (NABP) from sponsored search listings. Using comScore click-through data originated from health-related queries, we study how the ban affects consumer search and click behavior in a difference-in-differences framework using the synthetic control method. We find that non-NABP-certified pharmacies receive fewer clicks after the ban and this effect is heterogeneous. In particular, pharmacies not certified by the NABP, but certified by other sources (other-certified websites), experience an increase in organic clicks that partially offsets the loss in paid clicks after the ban. In contrast, pharmacies not certified by any certification agencies experience much lower rates of substitution in organic clicks. These results suggest that the ban has increased the search cost for other-certified websites, but at least some consumers overcome the search cost by switching from sponsored to organic links. The lower substitution for uncertified websites may be explained by the rising consumer concerns about the quality of drugs sold on uncertified websites after the ban.Working Paper Series (National Bureau of Economic Research)no. w20088.Banning Foreign Pharmacies from Sponsored Search Search • Learning • Information and Knowledge • Communication • Belief • UnawarenessjelcGovernment Policy • Regulation • Public HealthjelcEnergy, Environmental, Health, and Safety LawjelcRetail and Wholesale Trade • e-CommercejelcSearch • Learning • Information and Knowledge • Communication • Belief • UnawarenessGovernment Policy • Regulation • Public HealthEnergy, Environmental, Health, and Safety LawRetail and Wholesale Trade • e-CommerceD83jelcI18jelcK32jelcL81jelcChesnes Matthew1366410Dai Weijia (1366411Jin Ginger Zhe1366412National Bureau of Economic Research.MaCbNBERMaCbNBERBOOK9910708149803321Banning Foreign Pharmacies from Sponsored Search3389016UNINA