The Editor vs. the Algorithm

Jörg Claussen, Christian Peukert, Ananya Sen

Research output: Contribution to conferencePaperResearch

Abstract

We run a field experiment to quantify the economic returns to data and informational externalities associated with algorithmic recommendation in the context of online news. Our results show that personalized recommendation can outperform human curation in terms of user engagement, though this crucially depends on the amount of personal data. Limited individual data or breaking news leads the editor to outperform the algorithm. Additional data helps algorithmic performance but decreasing economic returns set in rapidly. Investigating informational externalities highlights that personalized recommendation reduces consumption diversity. Moreover, users associated with lower levels of digital literacy and more extreme political views engage more with algorithmic recommendations.
Original languageEnglish
Publication date2019
Number of pages32
Publication statusPublished - 2019
EventCESifo Area Conference on Global Economy. CESifo Conference Centre - München, Germany
Duration: 30 Jan 200431 Jan 2004

Conference

ConferenceCESifo Area Conference on Global Economy. CESifo Conference Centre
CountryGermany
CityMünchen
Period30/01/200431/01/2004

Cite this

Claussen, J., Peukert, C., & Sen, A. (2019). The Editor vs. the Algorithm. Paper presented at CESifo Area Conference on Global Economy. CESifo Conference Centre, München, Germany.