Steering via algorithmic recommendations

• 成果类型: Article
• 署名作者: Chen, Nan; Tsai, Hsin-Tien
• 署名单位: National University of Singapore; National University of Singapore
• 刊物名称: RAND JOURNAL OF ECONOMICS
• ISSN/ISSBN: 0741-6261
• DOI: 10.1111/1756-2171.12481
• 发表日期: 2024
• 页码: 501-518
• 关键词: Vertical Integration; foreclosure; price; COMPETITION; amazon.com; platform; welfare; search

摘要

This article studies self-preferencing in algorithmic recommendations on dominant platforms, focusing on Amazon's dual role as platform owner and retailer. We find that products sold by Amazon receive substantially more Frequently Bought Together recommendations across popularity deciles. To establish causality, we exploit within-product variation generated by Amazon stockouts. We find that when Amazon is out of stock, identical products sold by third-party sellers face an eight-percentage-point decrease in the probability of receiving a recommendation. The pattern can be explained by the economic incentives of steering but not explained by consumer preference. Furthermore, the steering lowers recommendation efficiency.