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Competition, Alignment, and Equilibria in Digital Marketplaces. (arXiv:2208.14423v1 [cs.GT])
Aug. 31, 2022, 1:10 a.m. | Meena Jagadeesan, Michael I. Jordan, Nika Haghtalab
cs.LG updates on arXiv.org arxiv.org
Competition between traditional platforms is known to improve user utility by
aligning the platform's actions with user preferences. But to what extent is
alignment exhibited in data-driven marketplaces? To study this question from a
theoretical perspective, we introduce a duopoly market where platform actions
are bandit algorithms and the two platforms compete for user participation. A
salient feature of this market is that the quality of recommendations depends
on both the bandit algorithm and the amount of data provided by …
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