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Modelling Recommendation Systems’ Financial Impact
Mälardalen University, School of Business, Society and Engineering, Industrial Economics and Organisation.
2025 (English)Conference paper, Oral presentation with published abstract (Other academic)
Abstract [en]

This paper explores the financial impacts of recommendation systems (RS) in transaction-based businesses. RS are common in digital platforms, optimizing product assortments and influencing revenue management. This study investigates the cost mechanism's role and impact on RS financial performance, through a 2x5 experimental setup generating ten scenarios. Findings reveal that RS strategies balancing firm and customer interests can lower total costs compared to user-centric strategies, especially when item cost correlates with item ratings. This research contributes to understanding RS's holistic financial impact, emphasizing the possibilities for cost management in digital platforms.

Place, publisher, year, edition, pages
2025.
National Category
Business Administration
Identifiers
URN: urn:nbn:se:mdh:diva-74509OAI: oai:DiVA.org:mdh-74509DiVA, id: diva2:2016064
Conference
Euroma2025, 13th-18th June, 2025, Milan Italy
Available from: 2025-11-24 Created: 2025-11-24 Last updated: 2025-11-24Bibliographically approved

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Annerwall, Lovisa

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CiteExportLink to record
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  • apa
  • ieee
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Language
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