Abstract
We conduct a 6 month field experiment on a movie-recommendation platform to identify if and how recommendation systems affect consumption. We use within-consumer randomization at the good level and elicit beliefs about unconsumed goods to disentangle exposure from informational effects. We have three experimental groups: (a) control, (b) exposed, and (c) recommended + exposed goods where only goods in (c) are recommended and we elicit beliefs about goods in (b) and (c). Comparing across these treatment arms we find recommendations increase consumption beyond its role in exposing goods to consumers. We provide support for an informational mechanism: recommendations affect consumers' beliefs, which in turn explain consumption. Recommendations reduce uncertainty about goods consumers are most uncertain about and induce information acquisition. Finally, we find evidence for spatial correlation in beliefs.
Original language | English (US) |
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Title of host publication | EC 2023 - Proceedings of the 24th ACM Conference on Economics and Computation |
Publisher | Association for Computing Machinery, Inc |
Pages | 117 |
Number of pages | 1 |
ISBN (Electronic) | 9798400701047 |
DOIs | |
State | Published - Jul 9 2023 |
Event | 24th ACM Conference on Economics and Computation, EC 2023 - London, United Kingdom Duration: Jul 9 2023 → Jul 12 2023 |
Publication series
Name | EC 2023 - Proceedings of the 24th ACM Conference on Economics and Computation |
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Conference
Conference | 24th ACM Conference on Economics and Computation, EC 2023 |
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Country/Territory | United Kingdom |
City | London |
Period | 7/9/23 → 7/12/23 |
Bibliographical note
Publisher Copyright:© 2023 Owner/Author(s).
Keywords
- field experiment
- information acquisition
- recommender systems