User-Generated Data Network Effects and Market Competition Dynamics

This Article defines User-Generated Data (“UGD”) network effects, distinguishes them from the more familiar concept of traditional network effects, and explores their implications for market competition dynamics. It explains that UGD network effects produce various efficiencies for digital service providers (“data platforms”) by empowering their services’ optimization, personalization, and continuous diversification. In light of these efficiencies, competition dynamics in UGD-driven markets tend to be unstable and lead to the formation of dominant multi-industry conglomerates. These processes will enhance social welfare because they are natural and efficient. Conversely, countervailing UGD network effects also empower data platforms to detect and neutralize competitive threats, price discriminate among users, and manipulate users’ behaviors. The realization of these effects will result in inefficiencies, which will undermine social welfare. After a comprehensive analysis of conflicting economic forces, this Article sets the ground for informed policymaking. It suggests that emerging calls to aggravate antitrust enforcement and to “break up” Big Tech are ill-advised. Instead, this Article calls for policymakers to draw inspiration from traditional network industries’ public utility and open-access regulations

Tag based Bayesian latent class models for movies : economic theory reaches out to big data science

For the past 50 years, cultural economics has developed as an independent research specialism. At its core are the creative industries and the peculiar economics associated with them, central to which is a tension that arises from the notion that creative goods need to be experienced before an assessment can be made about the utility they deliver to the consumer. In this they differ from the standard private good that forms the basis of demand theory in economic textbooks, in which utility is known ex ante. Furthermore, creative goods are typically complex in composition and subject to heterogeneous and shifting consumer preferences. In response to this, models of linear optimization, rational addiction and Bayesian learning have been applied to better understand consumer decision- making, belief formation and revision. While valuable, these approaches do not lend themselves to forming verifiable hypothesis for the critical reason that they by-pass an essential aspect of creative products: namely, that of novelty. In contrast, computer sciences, and more specifically recommender theory, embrace creative products as a study object. Being items of online transactions, users of creative products share opinions on a massive scale and in doing so generate a flow of data driven research. Not limited by the multiple assumptions made in economic theory, data analysts deal with this type of commodity in a less constrained way, incorporating the variety of item characteristics, as well as their co-use by agents. They apply statistical techniques supporting big data, such as clustering, latent class analysis or singular value decomposition. This thesis is drawn from both disciplines, comparing models, methods and data sets. Based upon movie consumption, the work contrasts bottom-up versus top-down approaches, individual versus collective data, distance measures versus the utility-based comparisons. Rooted in Bayesian latent class models, a synthesis is formed, supported by the random utility theory and recommender algorithm methods. The Bayesian approach makes explicit the experience good nature of creative goods by formulating the prior uncertainty of users towards both movie features and preferences. The latent class method, thus, infers the heterogeneous aspect of preferences, while its dynamic variant- the latent Markov model - gets around one of the main paradoxes in studying creative products: how to analyse taste dynamics when confronted with a good that is novel at each decision point. Generated by mainly movie-user-rating and movie-user-tag triplets, collected from the Movielens recommender system and made available as open data for research by the GroupLens research team, this study of preference patterns formation for creative goods is drawn from individual level data

Discovering music in the streaming era: How online recommendation engines and application design influence users’ habits and discoveries in online music streaming services

Framveksten av nettbaserte musikkstrømmetjenester som Spotify, Tidal, og Apple Music har siden slutten av 2000-tallet tatt over som den vanligste måten å konsumere musikk på. Trenden er å ikke lenger eie musikken vår, i form av fysiske CD-er, kassetter, vinyl, eller til og med digitale kopier, men å bruke en nettstrømmetjeneste for å få tilgang til musikk når som helst. Strømmeplattformene gjør det også mulig for artister å publisere musikk i høyere hastighet enn før, og denne økte produksjonen av innhold resulterer ofte i problemer med sortering og filtrering. Strømmeplatformenes løsning på slike problemer er å implementere anbefalingsmotorer som opererer ved hjelp av brukerdata-drevne algoritmer, og smart applikasjonsdesign. Mens slike motorer er implementert for å løse problemer, delvis med sikte på å forbedre forbrukeropplevelsen, kan man ikke ignorere de potensielt negative effektene. Målet med denne oppgaven var å avdekke effekten av nettbaserte anbefalingsmotorer, og brukeropplevelsesdesign, på brukere av musikkstrømme-platformen Spotify, og å forstå hvordan musikkstrømme-plattformer endrer hvordan vi forbruker og oppdager musikk. Gjennom analyse av musikkstrømmeplattformen Spotify, og en kvantitativ undersøkelse av brukervaner og erfaringer med musikkstrømme-plattformen. Denne oppgaven består av tre hoveddeler. Den første hoveddelen av denne oppgaven handler om anbefalingsmotorer, som innebærer historien til anbefalingsmotorer, hvordan anbefalingsmotorer fungerer, hvordan anbefalingsmotorene til Spotify fungerer, og de ulike typene anbefalingsmotorer. Den andre hoveddelen er en analyse av Spotify, som fokuserer på å se på plattformen gjennom sentrale designteorier og indentifisere de viktige egenskapene til plattformen, som gjør den unik på sitt felt. Den tredje og kanskje viktigste hoveddelen av denne oppgaven består av en kvantitativ undersøkelse av brukervaner og erfaringer med musikkstrømme-plattformen Spotify. Nøkkelord: Digital kultur, nettbaserte musikkstrømmetjenester, Spotify, Tidal, Apple Music, iTunes, anbefalingsmotorer, anbefalingsalgoritmer, brukeropplevelsesdesign, brukergrensesnitt design, kvantitativ undersøkelse, Michael Schrage, Gestalt Theory, Jakobs Law of Internet User Experience.Master's Thesis in Digital CultureDIKULT350MAHF-DIKU

Living analytics methods for the social web

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Distances in the field : mapping similarity and familiarity in the production, curation and consumption of Australian art music

This thesis provides a timely intervention in the investigation of cultural fields by employing traditional and new data analytics to expand our understanding of fields as multi-dimensional sites of production, curation and consumption. Through a case study of contemporary Australian art music, the research explores the multiple ways in which the concept of ‘distance’ contributes to how we conceive of and engage with fields of artistic practice. While the concept of distance has often been an implicit or axiomatic concern for cultural sociology, this thesis foregrounds how it can be used to analyse fields from multiple perspectives, at multiple scales of enquiry and using diverse methodologies. In doing so, it distinguishes between notions of distance in the related concepts of similarity and familiarity. In the former, the relative proximities of cultural producers can be mapped to discern and contrast the organising principles which underlie different perspectives of a field. In the latter, the degree of an individual’s familiarity with an item or genre can be included in theorisations of cultural preferences and their social dimensions. This is disrupted in a field such as Australian art music, however, as its emphasis on experimentation and innovation presents barriers to developing familiarity. Distance can be considered a defining characteristic of this field, and motivates its selection as a critical case study from which to investigate how audiences form attachments to distant musical sounds. The investigation of distance from multiple perspectives, using different scales of analysis and across a series of focal points in the lifecycle of artist practice, provides an analysis of Australian art music in terms of the tensions which emerge from these intersecting representations of the field. The singular spatial representation of ‘objective relations’ in a field, and a concern with power and domination – as found in the approach of Bourdieu – is replaced by a multiplicity of sets of relations and a concern with their organising principles and juxtapositions. The thesis argues that the actor constellations which distances produce are intimately linked to our capacity to engage with fields as discrete and knowable domains of cultural practice. Beyond our capacity to know a cultural field, it also argues for the importance of reconsidering how we form attachments to distant musical tastes. As an avant-garde genre which embraces foreign and confounding sounds, audiences require the capacity to draw on a range of consumption strategies and techniques to successfully engage with and value the unfamiliar

Into the Black Box: Designing for Transparency in Artificial Intelligence

Indiana University-Purdue University Indianapolis (IUPUI)The rapid infusion of artificial intelligence into everyday technologies means that consumers are likely to interact with intelligent systems that provide suggestions and recommendations on a daily basis in the very near future. While these technologies promise much, current issues in low transparency create high potential to confuse end-users, limiting the market viability of these technologies. While efforts are underway to make machine learning models more transparent, HCI currently lacks an understanding of how these model-generated explanations should best translate into the practicalities of system design. To address this gap, my research took a pragmatic approach to improving system transparency for end-users. Through a series of three studies, I investigated the need and value of transparency to end-users, and explored methods to improve system designs to accomplish greater transparency in intelligent systems offering recommendations. My research resulted in a summarized taxonomy that outlines a variety of motivations for why users ask questions of intelligent systems; useful for considering the type and category of information users might appreciate when interacting with AI-based recommendations. I also developed a categorization of explanation types, known as explanation vectors, that is organized into groups that correspond to user knowledge goals. Explanation vectors provide system designers options for delivering explanations of system processes beyond those of basic explainability. I developed a detailed user typology, which is a four-factor categorization of the predominant attitudes and opinion schemes of everyday users interacting with AI-based recommendations; useful to understand the range of user sentiment towards AI-based recommender features, and possibly useful for tailoring interface design by user type. Lastly, I developed and tested an evaluation method known as the System Transparency Evaluation Method (STEv), which allows for real-world systems and prototypes to be evaluated and improved through a low-cost query method. Results from this dissertation offer concrete direction to interaction designers as to how these results might manifest in the design of interfaces that are more transparent to end users. These studies provide a framework and methodology that is complementary to existing HCI evaluation methods, and lay the groundwork upon which other research into improving system transparency might build