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Ranking algorithms are the information gatekeepers of the Internet era. We develop a stylized framework to study the effects of ranking algorithms on opinion dynamics. We consider rankings that depend on popularity and on personalization. We find that popularity driven rankings can enhance...
Persistent link: https://www.econbiz.de/10011669418
This paper provides a simple theoretical framework to evaluate the effect of key parameters of ranking algorithms, namely popularity and personalization parameters, on measures of platform engagement, misinformation and polarization. The results show that an increase in the weight assigned to...
Persistent link: https://www.econbiz.de/10013413453
Algorithm-based decision support systems play an increasingly important role in decisions involving exploration tasks … the willingness of participants to follow the advice of a reinforcement learning algorithm depends on the fit between … their own exploration preferences and the algorithm's advice. We vary the weight that the algorithm places on exploration …
Persistent link: https://www.econbiz.de/10013482224
We study the interaction between algorithmic advice and human decisions using high-resolution hotel-room pricing data. We document that price setting frictions, arising from adjustment costs of human decision makers, induce a conflict of interest with the algorithmic advisor. A model of advice...
Persistent link: https://www.econbiz.de/10014444885
model in a dynamic setup, whereby past market shares lead to a better search algorithm. The dynamic consideration is pro …
Persistent link: https://www.econbiz.de/10014444933
This paper examines the impact of the Digital Markets Act (DMA) on consumer behavior, focusing on changes in Google's search result presentation in the European Union (EU). Specifically, it investigates the effects of Google's removal of clickable maps in search results, a modification...
Persistent link: https://www.econbiz.de/10014632304
This paper presents an empirical model of sponsored search auctions in which advertisers are ranked by bid and ad quality. We introduce a new nonparametric estimator for the advertiser's ad value and its distribution under the 'incomplete information' assumption. The ad value is characterized by...
Persistent link: https://www.econbiz.de/10014228566
A large literature studies subjective beliefs about economic facts using unincentivized survey questions. We devise randomized experiments in a representative online survey to investigate whether incentivizing belief accuracy affects stated beliefs about average earnings by professional degree...
Persistent link: https://www.econbiz.de/10011987028
longitudinal dataset, allows for comparison of the same individuals before and after the introduction of the algorithm. The results … show that the introduction of the algorithm on Instagram had a negative impact on teenagers mental health. Furthermore, I … the algorithm on Instagram favoring negative social comparisons. …
Persistent link: https://www.econbiz.de/10015191592
Partly motivated by the recent antitrust investigations concerning Google, we develop a leverage theory of tying in two …
Persistent link: https://www.econbiz.de/10011536190