Lattice Games and the Economics of Aggregators
The authors model the strategic decisions of web sites in content markets, where sites may reduce user search cost by aggregating content. Example aggregations include political news, technology, and other niche-topic websites. They model this market scenario as an extensive form game of complete information, where sites choose a set of content to aggregate and users associate with sites that are nearest to their interests. Thus, their scenario is a location game in which sites choose to aggregate content at a certain point in user-preference space, and their choice of distance metric, Jacquard distance, induces a lattice structure on the game.