Buyer-Optimal Algorithmic Consumption

• Tác giả: Shota Ichihashi, Alex Smolin
• Ngôn ngữ: eng
• Ký hiệu phân loại: 640.7 Education, research, related topics; evaluation and purchasing guides
• Thông tin xuất bản: 2023
• Bộ sưu tập: Metadata
• ID: 198231

Tóm tắt

An algorithm recommends a product to a buyer based on the product's value to the buyer and its price. We characterize an algorithm that maximizes the buyer's expected payoff and show that it strategically biases recommendations to incentivize lower prices. Under optimal algorithmic consumption, informing a seller about the buyer's value does not affect the buyer's expected payoff but leads to a more equitable distribution of payoffs across different values. These results extend to Pareto-optimal algorithms and multiseller markets.