Data (r)evolution - The economics of algorithmic search and recommender services

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Ilmenau Economics Discussion Papers ; No. 148

Classification and Topics

• Classification: Wirtschaft ; Information and Internet Services; Computer Software ; Antitrust Issues and Policies: General ; Antitrust Law ; Regulated Industries and Administrative Law ; Cyber Law ; Oligopoly and Other Imperfect Markets ; Economics of Regulation ; Entertainment; Media ; Business Economics ; Cultural Economics; Economic Sociology; Economic Anthropology: General
• Subject: algorithmic search and recommender services ; data economics ; media economics ; internet economics ; digital economy ; cultural economics ; competition ; antitrust ; industry regulation ; digital business ecosystems

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Budzinski, Oliver ; Gänßle, Sophia ; Lindstädt-Dreusicke, Nadine
• Event: Veröffentlichung
• (who): Technische Universität Ilmenau, Institut für Volkswirtschaftslehre
• (where): Ilmenau
• (when): 2021

Further information

• Handle: http://hdl.handle.net/10419/228752
• Last update: 10.03.2025, 11:42 AM CET