Learning users' interests by quality classification in market-based recommender systems

Recommender systems are widely used to cope with the problem of information overload and, to date, many recommendation methods have been developed. However, no one technique is best for all users in all situations. To combat this, we have previously developed a market-based recommender system that allows multiple agents (each representing a different recommendation method or system) to compete with one another to present their best recommendations to the user. In our system, the marketplace encourages good recommendations by rewarding the corresponding agents who supplied them according to the users’ ratings of their suggestions. Moreover, we have theoretically shown how our system incentivises the agents to bid in a manner that ensures only the best recommendations are presented. To do this effectively in practice, however, each agent needs to be able to classify its recommendations into different internal quality levels, learn the users’ interests for these different levels, and then adapt its bidding behaviour for the various levels accordingly. To this end, in this paper we develop a reinforcement learning and Boltzmann exploration strategy that the recommending agents can exploit for these tasks. We then demonstrate that this strategy does indeed help the agents to effectively obtain information about the users’ interests which, in turn, speeds up the market convergence and enables the system to rapidly highlight the best recommendations

Social Machinery and Intelligence

Social machines are systems formed by technical and human elements interacting in a structured manner. The use of digital platforms as mediators allows large numbers of human participants to join such mechanisms, creating systems where interconnected digital and human components operate as a single machine capable of highly sophisticated behaviour. Under certain conditions, such systems can be described as autonomous and goal-driven agents. Many examples of modern Artificial Intelligence (AI) can be regarded as instances of this class of mechanisms. We argue that this type of autonomous social machines has provided a new paradigm for the design of intelligent systems marking a new phase in the field of AI. The consequences of this observation range from methodological, philosophical to ethical. On the one side, it emphasises the role of Human-Computer Interaction in the design of intelligent systems, while on the other side it draws attention to both the risks for a human being and those for a society relying on mechanisms that are not necessarily controllable. The difficulty by companies in regulating the spread of misinformation, as well as those by authorities to protect task-workers managed by a software infrastructure, could be just some of the effects of this technological paradigm

Recommender Systems

The ongoing rapid expansion of the Internet greatly increases the necessity of effective recommender systems for filtering the abundant information. Extensive research for recommender systems is conducted by a broad range of communities including social and computer scientists, physicists, and interdisciplinary researchers. Despite substantial theoretical and practical achievements, unification and comparison of different approaches are lacking, which impedes further advances. In this article, we review recent developments in recommender systems and discuss the major challenges. We compare and evaluate available algorithms and examine their roles in the future developments. In addition to algorithms, physical aspects are described to illustrate macroscopic behavior of recommender systems. Potential impacts and future directions are discussed. We emphasize that recommendation has a great scientific depth and combines diverse research fields which makes it of interests for physicists as well as interdisciplinary researchers.Comment: 97 pages, 20 figures (To appear in Physics Reports

Algorithmic Collusion or Competition: the Role of Platforms' Recommender Systems

Recent academic research has extensively examined algorithmic collusion resulting from the utilization of artificial intelligence (AI)-based dynamic pricing algorithms. Nevertheless, e-commerce platforms employ recommendation algorithms to allocate exposure to various products, and this important aspect has been largely overlooked in previous studies on algorithmic collusion. Our study bridges this important gap in the literature and examines how recommendation algorithms can determine the competitive or collusive dynamics of AI-based pricing algorithms. Specifically, two commonly deployed recommendation algorithms are examined: (i) a recommender system that aims to maximize the sellers' total profit (profit-based recommender system) and (ii) a recommender system that aims to maximize the demand for products sold on the platform (demand-based recommender system). We construct a repeated game framework that incorporates both pricing algorithms adopted by sellers and the platform's recommender system. Subsequently, we conduct experiments to observe price dynamics and ascertain the final equilibrium. Experimental results reveal that a profit-based recommender system intensifies algorithmic collusion among sellers due to its congruence with sellers' profit-maximizing objectives. Conversely, a demand-based recommender system fosters price competition among sellers and results in a lower price, owing to its misalignment with sellers' goals. Extended analyses suggest the robustness of our findings in various market scenarios. Overall, we highlight the importance of platforms' recommender systems in delineating the competitive structure of the digital marketplace, providing important insights for market participants and corresponding policymakers.Comment: 33 pages, 5 figures, 4 table

Recommender systems and their ethical challenges

This article presents the first, systematic analysis of the ethical challenges posed by recommender systems through a literature review. The article identifies six areas of concern, and maps them onto a proposed taxonomy of different kinds of ethical impact. The analysis uncovers a gap in the literature: currently user-centred approaches do not consider the interests of a variety of other stakeholders—as opposed to just the receivers of a recommendation—in assessing the ethical impacts of a recommender system

Negotiation-Style Recommender Based on Computational Ecology in Open Negotiation Environments.

The system described herein represents the first example of a recommender system in digital ecosystems where agents negotiate services on behalf of small companies. The small companies compete not only with price or quality, but with a wider service-by-service composition by subcontracting with other companies. The final result of these offerings depends on negotiations at the scale of millions of small companies. This scale requires new platforms for supporting digital business ecosystems, as well as related services like open-id, trust management, monitors and recommenders. This is done in the Open Negotiation Environment (ONE), which is an open-source platform that allows agents, on behalf of small companies, to negotiate and use the ecosystem services, and enables the development of new agent technologies. The methods and tools of cyber engineering are necessary to build up Open Negotiation Environments that are stable, a basic condition for predictable business and reliable business environments. Aiming to build stable digital business ecosystems by means of improved collective intelligence, we introduce a model of negotiation style dynamics from the point of view of computational ecology. This model inspires an ecosystem monitor as well as a novel negotiation style recommender. The ecosystem monitor provides hints to the negotiation style recommender to achieve greater stability of an open negotiation environment in a digital business ecosystem. The greater stability provides the small companies with higher predictability, and therefore better business results. The negotiation style recommender is implemented with a simulated annealing algorithm at a constant temperature, and its impact is shown by applying it to a real case of an open negotiation environment populated by Italian companies.Fil: De La Rosa, Josep Lluis. Universidad de Girona; EspañaFil: Hormazábal, Nicolás. Universidad de Girona; EspañaFil: Aciar, Silvana Vanesa. Universidad Nacional de San Juan; Argentina. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - San Juan; ArgentinaFil: Lopardo, Gabriel Alejandro. Universidad de Girona; EspañaFil: Trias, Albert. Universidad de Girona; EspañaFil: Montaner, Miquel. No especifíca

Trust-Networks in Recommender Systems

Similarity-based recommender systems suffer from significant limitations, such as data sparseness and scalability. The goal of this research is to improve recommender systems by incorporating the social concepts of trust and reputation. By introducing a trust model we can improve the quality and accuracy of the recommended items. Three trust-based recommendation strategies are presented and evaluated against the popular MovieLens [8] dataset