Are Netflix & Amazon recommending things right?

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CSAIL principal investigator Devavrat Shah’s group specializes in analyzing how social networks process information. In 2012, the group demonstrated algorithms that could predict what topics would trend on Twitter up to five hours in advance; this year, they used the same framework to predict fluctuations in the prices of the online currency known as Bitcoin.

Next month, at the Conference on Neural Information Processing Systems, they’ll present a paper that applies their model to the recommendation engines that are familiar from websites like Amazon and Netflix — with surprising results.

“Our interest was, we have a nice model for understanding data-processing from social data,” says Shah, the Jamieson Associate Professor of Electrical Engineering and Computer Science. “It makes sense in terms of how people make decisions, exhibit preferences, or take actions. So let’s go and exploit it and design a better, simple, basic recommendation algorithm, and it will be something very different. But it turns out that under that model, the standard recommendation algorithm is the right thing to do.”


The standard algorithm is known as “collaborative filtering.” To get a sense of how it works, imagine a movie-streaming service that lets users rate movies they’ve seen. To generate recommendations specific to you, the algorithm would first assign the other users similarity scores based on the degree to which their ratings overlap with yours. Then, to predict your response to a particular movie, it would aggregate the ratings the movie received from other users, weighted according to similarity scores.



Read more at MIT News: bit.ly/1ES5Jts