arXiv
Open Access
2024
A Theory of "Likes"
Jean-Michel Benkert
Armin Schmutzler
Abstrak
This paper investigates the value of recommendations for disseminating economic information, with a focus on frictions resulting from preference heterogeneity. We consider Bayesian expected-payoff maximizers who receive non-strategic recommendations by other consumers. We show by which channels a recommendation system influences consumer demand and welfare. Our analysis reveals how the welfare-maximizing design of a recommendation system may differ from what a profit-maximizing designer would choose to do.
Topik & Kata Kunci
Penulis (2)
J
Jean-Michel Benkert
A
Armin Schmutzler
Akses Cepat
Informasi Jurnal
- Tahun Terbit
- 2024
- Bahasa
- en
- Sumber Database
- arXiv
- Akses
- Open Access ✓