Inflated Recommendations

• 成果类型: Article
• 署名作者: Peitz, Martin; Sobolev, Anton
• 署名单位: University of Mannheim; University of Mannheim; Leibniz Association; Ifo Institut
• 刊物名称: RAND JOURNAL OF ECONOMICS
• ISSN/ISSBN: 0741-6261
• DOI: 10.1111/1756-2171.70036
• 发表日期: 2026
• 关键词: bundling information goods; ECONOMICS

摘要

Biased recommendations arise naturally in markets with heterogeneous consumers. We study a model in which a monopolist offers an experience good to a population of consumers with heterogeneous tastes and makes personalized purchase recommendations. We provide conditions under which a firm makes welfare-reducing purchase recommendations with positive probability, resulting in inflated recommendations. We extend this insight to a setting in which an intermediary makes the recommendations, whereas a seller sets the retail price. Regulatory interventions that forbid inflated recommendations may lead to higher social welfare or may backfire.