1. Rewarding Social Recommendation in OSNs: Empirical Evidences, Modeling and Optimization
- Author
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Yishi Lin, Ye Li, Hong Xie, and John C. S. Lui
- Subjects
Scheme (programming language) ,Profit (accounting) ,Social network ,Computer science ,business.industry ,Computer Science Applications ,Key factors ,Computational Theory and Mathematics ,Risk analysis (engineering) ,Key (cryptography) ,Product (category theory) ,business ,computer ,Information Systems ,computer.programming_language - Abstract
Many companies are considering “social recommendation” for their businesses, e.g., “rms are offering rewards to customers who recommend the firms” products/services in online social networks (OSNs). However, the pros and cons of such social recommendation scheme are still unclear. Thus, it is difficult for firms to design rewarding schemes, and for OSN platforms to design regulating policies. Via empirical analysis of data, we first identify key factors that affect the spreading of a firm's product in OSNs. These findings enable us to develop an accurate (i.e., with a high validation accuracy) mathematical model on social recommendations. Our model captures how users decide whether to recommend an item, which is a key factor but often ignored by previous social recommendation models. We also design algorithms to infer model parameters. Using our model, we uncover conditions when social recommendation improves a firm's profit and users’ utilities, as well as when it cannot improve the profit or hurts users’ utilities. These conditions help the design of both rewarding schemes and regulating policies. Last but not least, we extend our model to an dynamic setting, so that a firm can improve its profit by dynamically optimizing its rewarding schemes.
- Published
- 2022