Traditional recommendation systems make recommendations based solely on the customer's past purchases, product ratings and demographic data without considering the profitability the items being recommended. In this work we study the question of how a vendor can directly incorporate the profitability of items into its recommender so as to maximize its expected profit while still providing accurate recommendations. Our approach uses the output of any traditional recommender system and adjust them according to item profitabilities. Our approach is parameterized so the vendor can control how much the recommendation incorporating profits can deviate from the traditional recommendation. We study our approach under two settings and show that it achieves approximately 22% more profit than traditional recommendations.
TU Dortmund（多特蒙德工业大学）；University of Minnesota（明尼苏达大学）
Academic research in the field of recommender systems mainly focuses on the problem of maximizing the users' utility by trying to identify the most relevant items for each user. However, such items are not necessarily the ones that maximize the utility of the service provider (e.g., an online retailer) in terms of the business value, such as profit. One approach to increasing the providers' utility is to incorporate purchase-oriented information, e.g., the price, sales probabilities, and the resulting profit, into the recommendation algorithms. In this paper we specifically focus on price- and…
Kempelen Institute of Intelligent Technologies（肯佩伦智能技术研究所）；Slovak University of Technology in Bratislava（布拉迪斯拉发斯洛伐克工业大学）；Exponea
Most of the research in the recommender systems domain is focused on the optimization of the metrics based on historical data such as Mean Average Precision (MAP) or Recall. However, there is a gap between the research and industry since the leading Key Performance Indicators (KPIs) for businesses are revenue and profit. In this paper, we explore the impact of manipulating the profit awareness of a recommender system. An average e-commerce business does not usually use a complicated recommender algorithm. We propose an adjustment of a predicted ranking for score-based recommender systems and e…
Automated recommendations can nowadays be found on many e-commerce platforms, and such recommendations can create substantial value for consumers and providers. Often, however, not all recommendable items have the same profit margin, and providers might thus be tempted to promote items that maximize their profit. In the short run, consumers might accept non-optimal recommendations, but they may lose their trust in the long run. Ultimately, this leads to the problem of designing balanced recommendation strategies, which consider both consumer and provider value and lead to sustained business su…
University of Minnesota（明尼苏达大学）；University of Klagenfurt（克拉根福大学）；Indiana University（印第安纳大学）
Today's research in recommender systems is largely based on experimental designs that are static in a sense that they do not consider potential longitudinal effects of providing recommendations to users. In reality, however, various important and interesting phenomena only emerge or become visible over time, e.g., when a recommender system continuously reinforces the popularity of already successful artists on a music streaming site or when recommendations that aim at profit maximization lead to a loss of consumer trust in the long run. In this paper, we discuss how Agent-Based Modeling and Si…
University of Colorado, Boulder（科罗拉多大学博尔德分校）；University of Minnesota（明尼苏达大学）；eBay, Inc.（eBay公司）；University of Klagenfurt（克拉根福大学）；National Institute of Advanced Industrial Science and Technology（日本产业技术综合研究所）；Expedia Group（Expedia集团）；Accenture（埃森哲）
Recommender systems are personalized information access applications; they are ubiquitous in today's online environment, and effective at finding items that meet user needs and tastes. As the reach of recommender systems has extended, it has become apparent that the single-minded focus on the user common to academic research has obscured other important aspects of recommendation outcomes. Properties such as fairness, balance, profitability, and reciprocity are not captured by typical metrics for recommender system evaluation. The concept of multistakeholder recommendation has emerged as a unif…
University of Science and Technology of China（中国科学技术大学）；Shandong University（山东大学）；Cambridge University（剑桥大学）；University of Glasgow（格拉斯哥大学）；University of Science of Technology of China（中国科学技术大学）
Learning from implicit feedback is one of the most common cases in the application of recommender systems. Generally speaking, interacted examples are considered as positive while negative examples are sampled from uninteracted ones. However, noisy examples are prevalent in real-world implicit feedback. A noisy positive example could be interacted but it actually leads to negative user preference. A noisy negative example which is uninteracted because of unawareness of the user could also denote potential positive user preference. Conventional training methods overlook these noisy examples, le…
A combinatorial recommender (CR) system feeds a list of items to a user at a time in the result page, in which the user behavior is affected by both contextual information and items. The CR is formulated as a combinatorial optimization problem with the objective of maximizing the recommendation reward of the whole list. Despite its importance, it is still a challenge to build a practical CR system, due to the efficiency, dynamics, personalization requirement in online environment. In particular, we tear the problem into two sub-problems, list generation and list evaluation. Novel and practical…
Tsinghua University（清华大学）；Tencent AI Lab（腾讯人工智能实验室）；National University of Singapore（新加坡国立大学）
Scaling reinforcement learning (RL) to recommender systems (RS) is promising since maximizing the expected cumulative rewards for RL agents meets the objective of RS, i.e., improving customers' long-term satisfaction. A key approach to this goal is offline RL, which aims to learn policies from logged data. However, the high-dimensional action space and the non-stationary dynamics in commercial RS intensify distributional shift issues, making it challenging to apply offline RL methods to RS. To alleviate the action distribution shift problem in extracting RL policy from static trajectories, we …
Nanjing University（南京大学）；University of Science and Technology of China（中国科学技术大学）；Southern University of Science and Technology（南方科技大学）
Evolutionary algorithms (EAs) are general-purpose optimization algorithms, inspired by natural evolution. Recent theoretical studies have shown that EAs can achieve good approximation guarantees for solving the problem classes of submodular optimization, which have a wide range of applications, such as maximum coverage, sparse regression, influence maximization, document summarization and sensor placement, just to name a few. Though they have provided some theoretical explanation for the general-purpose nature of EAs, the considered submodular objective functions are defined only over sets or …
Recommender systems have become the dominant means of curating cultural content, significantly influencing the nature of individual cultural experience. While the majority of research on recommender systems optimizes for personalized user experience, this paradigm does not capture the ways that recommender systems impact cultural experience in the aggregate, across populations of users. Although existing novelty, diversity, and fairness studies probe how systems relate to the broader social role of cultural content, they do not adequately center culture as a core concept and challenge. In this…
Fairness in recommendation has attracted increasing attention due to bias and discrimination possibly caused by traditional recommenders. In Interactive Recommender Systems (IRS), user preferences and the system's fairness status are constantly changing over time. Existing fairness-aware recommenders mainly consider fairness in static settings. Directly applying existing methods to IRS will result in poor recommendation. To resolve this problem, we propose a reinforcement learning based framework, FairRec, to dynamically maintain a long-term balance between accuracy and fairness in IRS. User p…
