Northeastern University: “Internet users regularly receive all kinds of personalized content, from Google search results to product recommendations on Amazon. This is thanks to the complex algorithms that produce results based on users’ profiles and past activity. It’s Big Data at work, and it’s often advantageous for users. But such personalization can also be a disadvantage to buyers, according to a team of Northeastern University researchers, when e-commerce websites manipulate search results or customize prices without the user’s knowledge—and which in some cases leads to some online shoppers paying more than others for the same thing. This transparency issue is at the core of a first-of-its-kind study co-authored by five Northeastern faculty and students, including assistant professors Christo Wilson and Alan Mislove of the College of Computer and Information Science and professor David Lazer, who holds joint appointments in CCIS and the College of Social Sciences and Humanities. In a new research paper, the team examined 16 popular e-commerce sites (10 general retailers and six hotel and car rental sites) to measure two specific forms of personalization: price discrimination, in which a product’s price is customized to the user; and price steering, in which the order of search results are customized to the user.”
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