More from these Authors

• Working Paper | HBS Working Paper Series | 2013

  Exclusive Preferential Placement as Search Diversion: Evidence from Flight Search

  Benjamin G. Edelman and Zhenyu Lai

  We analyze the incentives for a two-sided intermediary to divert consumers to its favored destinations. Applied to Internet search engines, we investigate a diversion mechanism based on Google's exclusive award of preferential placement to its own services. Using web traffic data from a quasi-experiment involving the introduction of Flight Search, a Google travel search service, we identify and measure the impact of diverting search away from non-paid algorithmic links to competing online travel agencies. Controlling for search intent, we find that Google's differential placement of Flight Search across similar search queries led to an 85% increase in click-through rates for paid advertising and a 65% decrease in click-through rates for non-paid algorithmic search links to competing online travel agencies. As search engines increase monetization of clicks by integrating specialized services into search results, our analysis suggests that exclusive preferential placement disproportionately impacts traffic to top sites most likely relevant to users' requests.

  Citation:

  Edelman, Benjamin G., and Zhenyu Lai. "Exclusive Preferential Placement as Search Diversion: Evidence from Flight Search." Harvard Business School Working Paper, No. 13–087, April 2013. (data appendix.)

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• Case | HBS Case Collection | 2013 (Revised from original 2013 version)

  CloudFlare, Inc.: Running Hot?

  Thomas R. Eisenmann and Alex Godden

  In July 2012, the cofounders of CloudFlare, a Silicon Valley startup that protects websites and accelerates their traffic, are considering the implications of five employees' resignations over the prior three months. Was this natural attrition for a high-tech venture with a staff of 35 experiencing explosive growth, or were the resignations symptomatic of bigger issues with CloudFlare's culture and management processes? After describing CloudFlare's early history, business model, organization structure, and human resources policies, the case presents first-person accounts from employees regarding their reasons for resigning, and then asks whether CloudFlare's cofounders should take any corrective actions.

  Keywords: Management Practices and Processes; Employee Relationship Management; Organizational Structure; Organizational Culture; Organizational Change and Adaptation; Growth Management; Web Sites; Entrepreneurship; Resignation and Termination; Business Startups; Information Technology Industry; Web Services Industry; California;

  Citation:

  Eisenmann, Thomas R., and Alex Godden. "CloudFlare, Inc.: Running Hot?" Harvard Business School Case 813-145, March 2013. (Revised from original January 2013 version.)

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• Supplement | HBS Case Collection | 2013 (Revised from original 2013 version)

  MuMaté (B-2): Confidential for Cantor

  Thomas R. Eisenmann and Alex Godden

  MuMaté, a fictional cult beverage company, requires capital to fund national expansion. Its cofounders, who have bootstrapped to this point, are now negotiating with venture capital firms to raise a $3 million funding round. The case describes MuMaté's inception, early history, business model, and factors that have fueled its rapid recent growth. As the case ends, the cofounders are debating whether to raise funds from VCs, angels, or asset-based lenders. The cofounders share their concerns about valuation and whether investors will seek to change the company's strategy and organizational culture.

  Keywords: negotiation;

  Citation:

  Eisenmann, Thomas R., and Alex Godden. "MuMaté (B-2): Confidential for Cantor." Harvard Business School Supplement 813-150, March 2013. (Revised from original January 2013 version.)

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