Strategic Recommendation: Revenue Optimal Matching for Online Platforms (Student Abstract)
Abstract
We consider a platform in a two-sided market with unit-supply sellers and unit-demand buyers. Each buyer can transact with a subset of sellers it knows off platform and another seller that the platform recommends. Given the choice of sellers, transactions and prices form a competitive equilibrium. The platform selects one seller for each buyer, and charges a fixed percentage of prices to all transactions that it recommends. The platform seeks to maximize total revenue. We show that the platform's problem is NP-hard, even when each buyer knows at most two buyers off platform. Finally, when each buyer values all sellers equally and knows only one buyer off platform, we provide a polynomial time algorithm that optimally solves the problem.
Cite
Text
D'Amico-Wong et al. "Strategic Recommendation: Revenue Optimal Matching for Online Platforms (Student Abstract)." AAAI Conference on Artificial Intelligence, 2024. doi:10.1609/AAAI.V38I21.30432Markdown
[D'Amico-Wong et al. "Strategic Recommendation: Revenue Optimal Matching for Online Platforms (Student Abstract)." AAAI Conference on Artificial Intelligence, 2024.](https://mlanthology.org/aaai/2024/daposamicowong2024aaai-strategic/) doi:10.1609/AAAI.V38I21.30432BibTeX
@inproceedings{daposamicowong2024aaai-strategic,
title = {{Strategic Recommendation: Revenue Optimal Matching for Online Platforms (Student Abstract)}},
author = {D'Amico-Wong, Luca and Ma, Gary Qiurui and Parkes, David C.},
booktitle = {AAAI Conference on Artificial Intelligence},
year = {2024},
pages = {23468-23470},
doi = {10.1609/AAAI.V38I21.30432},
url = {https://mlanthology.org/aaai/2024/daposamicowong2024aaai-strategic/}
}