| By: |
Guy Aridor;
Duarte Gonçalves;
Daniel Kluver;
Ruoyan Kong;
Joseph Konstan |
| Abstract: |
We conduct a field experiment on a movie-recommendation platform to identify
if and how recommendations affect consumption. We use within-consumer
randomization at the good level and elicit beliefs about unconsumed goods to
disentangle exposure from informational effects. 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. Our results highlight the importance of recommender
systems’ informational role when considering policies targeting these systems
in online marketplaces. |
| Keywords: |
recommender systems, information acquisition, field experiment |
| JEL: |
D83 D47 D12 L15 M37 |
| Date: |
2022 |
| URL: |
http://d.repec.org/n?u=RePEc:ces:ceswps:_10129&r=mkt |