Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/228752
Authors: 
Budzinski, Oliver
Gänßle, Sophia
Lindstädt-Dreusicke, Nadine
Year of Publication: 
2021
Series/Report no.: 
Ilmenau Economics Discussion Papers No. 148
Abstract: 
The paper analyses the economics behind algorithmic search and recommender services, based upon personalized user data. Such services play a paramount role for online services such as marketplaces (e.g. Amazon), audio streaming (e.g. Spotify), video streaming (e.g. Netflix, YouTube), app stores, social networks (e.g. Instagram, Tik Tok, Facebook, Twitter) and many more. We start with a systematic analysis of search and recommendation services as a commercial good, highlighting the changes to these services by the systematic use of algorithms. Then we discuss benefits and risk for welfare arising from the widespread employment of algorithmic search and recommendation systems. In doing so, we summarize the existing economics literature and go beyond its insights, including highlighting further research desires. Eventually, we derive regulatory and managerial implications drawing on the current state of academic knowledge.
Subjects: 
algorithmic search and recommender services
data economics
media economics
internet economics
digital economy
cultural economics
competition
antitrust
industry regulation
digital business ecosystems
JEL: 
L86
L40
K21
K23
K24
L13
L51
L82
M21
Z10
Document Type: 
Working Paper

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