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  7. Lecture by Prof. Dr. Armin Schmutzler, University Zürich, at the BERG Research Seminar on the 27th of January

Lecture by Prof. Dr. Armin Schmutzler, University Zürich, at the BERG Research Seminar on the 27th of January

We are pleased to announce that Prof. Dr. Armin Schmutzler, University Zürich, will give a lecture within the BERG-Research Seminar on the topic of

A Theory of “Likes”

The date is Tuesday, 27th of January, 3 p.m., in room FG1/00.08.

Abstract

This paper investigates the value of recommendations for disseminating economic information, with a focus on frictions resulting from preference heterogeneity. 
We consider Bayesian expected-payoff maximizers who receive non-strategic recommendations by other consumers. We show by which channels
a recommendation system influences consumer demand and welfare. Our analysis reveals how the welfare-maximizing design of a recommendation system 
may differ from what a profit-maximizing designer would choose to do.